Omaha Unilaterally Changes Retiree's Benefits--Contract Clause Implications (Report‪)‬

INTRODUCTION When is a public-entity labor contract a final contract and when can a governmental party unilaterally change the terms of the contract? In spring 2010 this was a question that was of significant interest to many in Omaha, Nebraska. The city, in an effort to cut expenses, unilaterally changed the retirement health insurance benefits for its retirees and employees. What happens in Omaha may impact other parts of the country, as many cities are looking to reduce expenditures in these difficult economic times.