Illinois Supreme Court To Hear Arguments On Pension Law
From the Chicago Tribune
More than a year of legal wrangling over Illinois' attempt to curb benefits in the nation's most underfunded pension system will come down to 50 minutes of courtroom debate Wednesday when lawyers for state government and public workers square off before the Illinois Supreme Court.
At issue is a law that seeks to address the state's soaring pension costs and a more than $100 billion pension liability by reducing cost-of-living increases, raising the retirement age for some workers and limiting how much of a salary can be counted toward a pension.
Lawyers for public workers and retirees argue the law violates what's known as the "pension protection clause" of the Illinois Constitution, which holds that public pensions are a "contractual" benefit and cannot "be diminished or impaired."
But lawyers for the state argue that the government's emergency police powers — in this case the ability to fund necessary government services — trump the constitution's pension guarantees.
A judge in Springfield ruled the law unconstitutional in November, contending it "without question" violated the pension guarantee. That prompted government lawyers to appeal to the state's highest court, which will hear oral arguments Wednesday. No ruling date has been set.
The outcome of the appeal has implications for new Gov. Bruce Rauner and the Democratic-controlled General Assembly's lawmakers, who have begun budget negotiations with the pension question on hold pending a resolution of the court case.
Read more in our daily News Update...
From the Chicago Tribune
More than a year of legal wrangling over Illinois' attempt to curb benefits in the nation's most underfunded pension system will come down to 50 minutes of courtroom debate Wednesday when lawyers for state government and public workers square off before the Illinois Supreme Court.
At issue is a law that seeks to address the state's soaring pension costs and a more than $100 billion pension liability by reducing cost-of-living increases, raising the retirement age for some workers and limiting how much of a salary can be counted toward a pension.
Lawyers for public workers and retirees argue the law violates what's known as the "pension protection clause" of the Illinois Constitution, which holds that public pensions are a "contractual" benefit and cannot "be diminished or impaired."
But lawyers for the state argue that the government's emergency police powers — in this case the ability to fund necessary government services — trump the constitution's pension guarantees.
A judge in Springfield ruled the law unconstitutional in November, contending it "without question" violated the pension guarantee. That prompted government lawyers to appeal to the state's highest court, which will hear oral arguments Wednesday. No ruling date has been set.
The outcome of the appeal has implications for new Gov. Bruce Rauner and the Democratic-controlled General Assembly's lawmakers, who have begun budget negotiations with the pension question on hold pending a resolution of the court case.
Read more in our daily News Update...