Appellee-plaintiffs are former employees of Appellant- defendant Unified Government of Athens-Clarke County ACC. They began their careers before the city and county governments consolidated in 1991, and they retired after July 1, 2002. At the time of Appellees’ retirement, ACC provided its employees with two options for health insurance coverage. They could choose between a Preferred Provider Organization PPO form of managed health care or a Health Management Organization HMO plan. The PPO allowed greater freedom of choice, but required the employee to pay a premium for coverage. The HMO option was provided cost-free. While employed, Appellees selected the PPO option and paid the premiums. After they retired, however, they sought to retain their PPO coverage without paying any premiums. ACC agreed to insure Appellees and their dependents cost-free under the HMO plan, but refused to provide them with cost-free PPO coverage. Appellees brought suit, asserting that they were entitled to free PPO coverage as an element of their retirement benefits. After conducting a hearing, the trial court found in Appellees’ favor, concluding that they “have a vested right in free health insurance at whatever level they had at the time they retired, and that ACC has impaired that right by requiring them to pay for a portion of the PPO program after retirement.” Based on that finding, the trial court ordered ACC “to provide Appellees PPO coverage at no cost until death.” ACC appeals from that order. “No . . . laws impairing the obligation of contract . . . shall be passed.” Ga. Const. of 1983, Art. I, Sec. I, Par. X. It is the law of this state that a statute or ordinance establishing a retirement plan for government employees becomes a part of an employee’s contract of employment if the employee contributes at any time any amount toward the benefits he is to receive, and if the employee performs services while the law is in effect; and that the impairment clause of our constitution cits. precludes the application of an amendatory statute or ordinance in the calculation of the employee’s retirement benefits if the effect of the amendment is to reduce rather than increase the benefits payable. It is not necessary for an application of this rule that the rights of the employee shall have become vested under the terms of the retirement plan while the amendment is in effect. Rather, if the employee performs services during the effective dates of the legislation, the benefits are constitutionally vested, precluding their legislative repeal as to the employee, regardless of whether or not the employee would be able to retire on any basis under the plan. Cits. Withers v. Register , 246 Ga. 158, 159 1 269 SE2d 431 1980. Here, the parties entered into the following stipulation:
Since unification of the governments in Athens-Clarke County, Athens-Clarke County Government has provided all its retirees hired before 1994 with health insurance coverage at no expense to the retiree. The amount of health insurance coverage provided to the retiree was the level of coverage maintained by the retiree upon leaving employment with the City, County or Athens-Clarke County governments, whether it be individual coverage, individual plus one dependent coverage, or family coverage. This health insurance coverage was provided under the authority of the Charter, ordinances and resolutions. Based on this stipulation, the trial court was authorized to find that, pursuant to ACC’s Charter, ordinances and resolutions, Appellees “have a vested right in free health insurance at whatever level they had at the time they retired . . . .”
