Judge Halts Illinois Pension Reform Law
By Ray Long
Chicago Tribune
7:54 PM CDT, May 14, 2014
SPRINGFIELD — State workers and retirees can breathe a sigh of relief — at least for a while — after a judge on Wednesday delayed the start of a far-reaching overhaul of their pensions until it can be determined whether the measure passes legal muster.
Retiree groups and a union coalition called We Are One Illinois won a temporary restraining order and preliminary injunction in Sangamon County Circuit Court that will put the law on hold and prevent it from taking effect on June 1.
The groups argued the law is unconstitutional because it scales back benefits and raises retirement ages. Under the Illinois Constitution, public employee pensions are a “contractual relationship” with benefits that cannot be “diminished or impaired.”
“This is an important first step in our efforts to overturn this unfair, unconstitutional law and to protect retirement security for working and retired Illinois families,” said Michael T. Carrigan, president of the Illinois AFL-CIO, the point man for the union coalition.
Judge John Belz recognized the retirees and others in the pension systems could suffer “irreparable harm” if the law is allowed to go forward while the constitutionality issues is still being fought out in the courts, according to his order. The case is expected to wind up in the Illinois Supreme Court.
“The goal of the pension reform law is to stabilize the pension systems,” said Maura Possley, spokeswoman for Attorney General Lisa Madigan. “Unfortunately, this decision will likely further burden the systems and hurt taxpayers.”
Gov. Pat Quinn and lawmakers approved the change to try to erase a pension system debt that tops $100 billion. The law impacts rank-and-file state workers, elected state officials, university employees and public school teachers outside of Chicago.
Rep. Elaine Nekritz, a Northbrook Democrat and a pension expert, said she did not think the judge’s ruling would slow down attempts by Cook County to overhaul its retirement systems. But many at the Capitol are feeling what is being called “pension fatigue” following reforms approved for state plans, which the governor signed into law, and some of the city of Chicago plans, which Quinn has not yet said whether he will sign.
rlong@tribune.com
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| Chicago students protest against school closings in 2013. |
Chicago Tribune
7:54 PM CDT, May 14, 2014
SPRINGFIELD — State workers and retirees can breathe a sigh of relief — at least for a while — after a judge on Wednesday delayed the start of a far-reaching overhaul of their pensions until it can be determined whether the measure passes legal muster.
Retiree groups and a union coalition called We Are One Illinois won a temporary restraining order and preliminary injunction in Sangamon County Circuit Court that will put the law on hold and prevent it from taking effect on June 1.
The groups argued the law is unconstitutional because it scales back benefits and raises retirement ages. Under the Illinois Constitution, public employee pensions are a “contractual relationship” with benefits that cannot be “diminished or impaired.”
“This is an important first step in our efforts to overturn this unfair, unconstitutional law and to protect retirement security for working and retired Illinois families,” said Michael T. Carrigan, president of the Illinois AFL-CIO, the point man for the union coalition.
Judge John Belz recognized the retirees and others in the pension systems could suffer “irreparable harm” if the law is allowed to go forward while the constitutionality issues is still being fought out in the courts, according to his order. The case is expected to wind up in the Illinois Supreme Court.
“The goal of the pension reform law is to stabilize the pension systems,” said Maura Possley, spokeswoman for Attorney General Lisa Madigan. “Unfortunately, this decision will likely further burden the systems and hurt taxpayers.”
Gov. Pat Quinn and lawmakers approved the change to try to erase a pension system debt that tops $100 billion. The law impacts rank-and-file state workers, elected state officials, university employees and public school teachers outside of Chicago.
Rep. Elaine Nekritz, a Northbrook Democrat and a pension expert, said she did not think the judge’s ruling would slow down attempts by Cook County to overhaul its retirement systems. But many at the Capitol are feeling what is being called “pension fatigue” following reforms approved for state plans, which the governor signed into law, and some of the city of Chicago plans, which Quinn has not yet said whether he will sign.
rlong@tribune.com
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