Opinion ID: 2779007
Heading Depth: 2
Heading Rank: 3

Heading: Welter and Rehrauer

Text: ¶47 Plaintiffs argue that instead of Loth, Welter and Rehrauer control. The court of appeals declined to discuss or distinguish these cases, except to agree with the circuit court that Loth appears at odds with both Welter . . . and Rehrauer, and that Loth discussed neither decision. Wis. Fed'n, 351 Wis. 2d 421, ¶11. Welter reasoned that statutory provisions that created duty disability pension rights for police officers vested those pension rights immediately upon an employee's membership in the City of Milwaukee's retirement system. Welter, 214 Wis. 2d at 488. Rehrauer concluded that the firefighters acquired vested duty disability pension rights that were contractually established during the course of their employment. Rehrauer, 246 Wis. 2d 863, ¶1. ¶48 In Welter, police officers eligible for duty disability pensions claimed that the applicable service 22 No. 2012AP2490 retirement allowance conversion age was the age that was in effect when they began employment. Welter, 214 Wis. 2d at 488. They argued that application of a lower conversion age, enacted by municipal ordinance after the officers began employment, was a breach of the vested contract right to the higher conversion age. Id. at 488. The court of appeals rejected the City's argument that an officer's right to a disability pension does not vest until he or she becomes disabled and agreed with the police officers. Id. at 494-95. ¶49 In Rehrauer, a contract in effect from 1972 to 1977 established lifetime duty disability pensions, allowing firefighters to avoid an eventual conversion to the lesser service retirement allowance. Rehrauer, 246 Wis. 2d 863, ¶¶2, 3 n.3. After that period, duty disability pensions were again converted to service retirement allowances. Id., ¶3 n.3. Firefighters hired before the 1972 contract period and beginning receipt of duty disability pension after 1977 claimed vested rights in the lifetime duty disability pension, which was the highest level of pension benefits contractually established at any time during the course of plaintiffs' active duty. Id., ¶¶2-3 n.3, 5, 7. The court of appeals held the firefighters gained vested rights in subsequently-negotiated benefits, at the highest level contractually established at any time during the course of active duty. Id., ¶11. ¶50 Before us, plaintiffs characterize Welter and Rehrauer as directly supporting the immediate vesting of rights to health insurance terms and conditions upon hiring, asserting that they 23 No. 2012AP2490 involved bilateral contracts founded on statutory language substantially identical to chs. 138 and 405 that plaintiffs claim is applicable here. Although we could draw many distinctions between plaintiffs' claims and those presented in Welter and Rehrauer, it is sufficient to say, as the County has argued, that both Welter and Rehrauer are pension cases, rather than health insurance cases and the rights asserted in Welter and Rehrauer arose from the City of Milwaukee's pension plan, not a Milwaukee County health insurance plan. Stated otherwise, neither Welter nor Rehrauer involves health insurance, the nature of which as we have explained, is a fluid opportunity for a limited period of time. ¶51 Health insurance, found in MCGO § 17.14 is on a separate and independent track from pension rights established in MCERS. As we have detailed above, the laws relied on by plaintiffs that arguably could be applicable to MCERS do not apply to or affect Milwaukee County's provision of health insurance.