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Second Circuit Renders Important Decision on Vested Retiree Benefits
In a significant ruling on February 5, 2025, the U.S. Court of Appeals for the Second Circuit addressed the enforceability of an arbitration provision in an expired collective bargaining agreement (CBA) in the case of Xerox Corporation v. Local 14A, Rochester Regional Joint Board, Xerographic Division Workers United.
The court’s decision delves into whether certain retiree health benefits promised under the CBA had vested and thus continued beyond the agreement’s expiration. The case underscores the complexities involved in interpreting CBAs and the conditions under which retiree benefits may be considered vested.
