The Minnesota Supreme Court will hear an appeal in the case of retired Duluth city workers who are suing the city for cutting their retiree health benefits.

A judge had ruled and the Appeals Court basically agreed that the city does have authority to change those benefits. The class action affects about  800 former city employees and about 400 to 600 dependents, says the Duluth News Tribune.

Now the retirees are going to the state Supreme Court, which has agreed to hear the case on May 7.

Duluth officials contend that the city is required to only provide retirees with the type of coverage offered to current employees and that having to maintain the old system would cost them an additional $200 million over 30 years.