Post by Logan on Mar 28, 2016 20:35:05 GMT -6
Illinois Supreme Court ruling forces city to find new fix for 2 pension funds
The Illinois Supreme Court dealt Mayor Rahm Emanuel — and in turn Chicago taxpayers — a big blow on Thursday when it found unconstitutional a law that aimed to shore up two city pension funds by cutting benefits and requiring workers to pay more toward retirement.
A group of unions, current workers and retired employees sued in response to the law, noting the 1970 Illinois Constitution states that pension benefits, once granted, "shall not be diminished or impaired." In a 5-0 ruling, the state's high court once again agreed with that argument, less than a year after reaching the same conclusion in a separate case covering state pension systems.
"These modifications to pension benefits unquestionably diminish the value of the retirement annuities the members of (the city workers and laborers funds) were promised when they joined the pension system," Justice Mary Jane Theis wrote in an opinion released Thursday. "Accordingly, based on the plain language of the act, these annuity reducing provisions contravene the pension protection clause's absolute prohibition against diminishment of pension benefits, and exceed the General Assembly's authority."
The new ruling raises further questions about the city's precarious financial situation.
Read more: www.chicagotribune.com/news/local/politics/ct-chicago-pension-law-ruling-0325-20160323-story.html
The Illinois Supreme Court dealt Mayor Rahm Emanuel — and in turn Chicago taxpayers — a big blow on Thursday when it found unconstitutional a law that aimed to shore up two city pension funds by cutting benefits and requiring workers to pay more toward retirement.
A group of unions, current workers and retired employees sued in response to the law, noting the 1970 Illinois Constitution states that pension benefits, once granted, "shall not be diminished or impaired." In a 5-0 ruling, the state's high court once again agreed with that argument, less than a year after reaching the same conclusion in a separate case covering state pension systems.
"These modifications to pension benefits unquestionably diminish the value of the retirement annuities the members of (the city workers and laborers funds) were promised when they joined the pension system," Justice Mary Jane Theis wrote in an opinion released Thursday. "Accordingly, based on the plain language of the act, these annuity reducing provisions contravene the pension protection clause's absolute prohibition against diminishment of pension benefits, and exceed the General Assembly's authority."
The new ruling raises further questions about the city's precarious financial situation.
Read more: www.chicagotribune.com/news/local/politics/ct-chicago-pension-law-ruling-0325-20160323-story.html