Illinois Pension Reform Struck Down
From Crain's Chicago Business
Pension reform is headed sooner rather than later to the Illinois Supreme Court.
Sangamon County Circuit Court Judge John Belz ruled Friday that the state's pension reform law is unconstitutional, setting up an immediate appeal to the state's highest court.
“The state of Illinois made a constitutionally protected promise to its employees concerning their pension benefits," Belz said in his six-page ruling. "Under established and uncontroverted Illinois law, the state of Illinois cannot break this promise.”
While the state lost this round, the constitutional question ultimately has to be resolved by the Illinois Supreme Court. The longer the case takes to get there, the longer state finances remain in limbo and the longer any “Plan B” for pension reform goes undiscussed.
“Seven people will decide this at the end of the day,” said Illinois Sen. Daniel Biss, D-Skokie, one of the principal co-authors of the pension reform law. “It's a victory for the state to get it to the Supreme Court faster. The state suffers from uncertainty. Ultimately what matters most is how we resolve this problem eventually.”
In a statement, the Attorney General Lisa Madigan's office said, "We will ask the (state Supreme) Court to expedite the appeal given the significant impact that a final decision in this case will have on the state's fiscal condition.”
The decision was widely expected, given the state Supreme Court's ruling in Kanerva vs. Weems, a similar case in July testing whether retiree health care benefits can be reduced. The justices ruled that the state constitution's pension protection clause is “aimed at protecting the right to receive the promised retirement benefits, not the adequacy of the funding to pay for them.”
Read more in our daily News Update...
From Crain's Chicago Business
Pension reform is headed sooner rather than later to the Illinois Supreme Court.
Sangamon County Circuit Court Judge John Belz ruled Friday that the state's pension reform law is unconstitutional, setting up an immediate appeal to the state's highest court.
“The state of Illinois made a constitutionally protected promise to its employees concerning their pension benefits," Belz said in his six-page ruling. "Under established and uncontroverted Illinois law, the state of Illinois cannot break this promise.”
While the state lost this round, the constitutional question ultimately has to be resolved by the Illinois Supreme Court. The longer the case takes to get there, the longer state finances remain in limbo and the longer any “Plan B” for pension reform goes undiscussed.
“Seven people will decide this at the end of the day,” said Illinois Sen. Daniel Biss, D-Skokie, one of the principal co-authors of the pension reform law. “It's a victory for the state to get it to the Supreme Court faster. The state suffers from uncertainty. Ultimately what matters most is how we resolve this problem eventually.”
In a statement, the Attorney General Lisa Madigan's office said, "We will ask the (state Supreme) Court to expedite the appeal given the significant impact that a final decision in this case will have on the state's fiscal condition.”
The decision was widely expected, given the state Supreme Court's ruling in Kanerva vs. Weems, a similar case in July testing whether retiree health care benefits can be reduced. The justices ruled that the state constitution's pension protection clause is “aimed at protecting the right to receive the promised retirement benefits, not the adequacy of the funding to pay for them.”
Read more in our daily News Update...