Judge John Belz Ruling on Pension Reform Bill

“Judge John Belz of the Sangamon County Circuit Court ruled today that Illinois’ pension reform bill – Senate Bill 1 – is unconstitutional.

Belz’s ruling is the first step in what likely will be a long legal process to determine whether that law can be implemented and what types of pension reform will withstand a court challenge in the future. The case will now head to the Illinois Supreme Court, where the final decision will be made on this law…” READ MORE

Title: “Circuit court rules Illinois pension bill unconstitutional”

Source: Illinois Policy

Author: Benjamin VanMetre

Date Published: November 21, 2014

Court Rules Pension Law Unconstitutional

"An Illinois judge has ruled that a law intended to fix the nation's worst state employee pension crisis violates the state Constitution.

Illinois Attorney General Lisa Madigan said she would immediately appeal the ruling to the state supreme court and ask it to rule on the matter on an expedited basis.

Sangamon County Circuit Judge John Belz ruled Friday in favor of state employees and retirees who sued to block the state's landmark pension overhaul..." READ MORE

Title: "Illinois pension reform law is unconstitutional, judge rules"

Source: Sun-Times Wires

Date Published: November 21, 2014

Sangamon County Pension Litigation Ruling

Click here to read the ruling from the Circuit Court for the Seventh Judicial Circuit - Sangamon County on the Pension Litigation.

State Senator Rose Addresses Pension Ruling

"...I always try to get you information as soon as possible. This afternoon, the Illinois circuit court in Sangamon County struck down Senate Bill 1, so the so called Pension Reform Law. He ruled it was unconstitutional…” READ MORE

Title: “51^st District Report”

Source: State Senator Chapin Rose

Author: State Senator Chapin Rose

Date Published: November 21, 2014

Illinois to Benefit from Bank of America Settlement

"A clutch of states including California, New York and Illinois will share in a mini-bonanza from the $16.65 billion settlement agreed by Bank of America Corp on Thursday.

The settlement announced by the U.S. Department of Justice calls for the second-largest U.S. bank to pay a $9.65 billion cash penalty on charges that it misled investors into buying troubled mortgage-backed securities, and provide $7 billion of relief to struggling homeowners and communities.

Six states will reap nearly $1 billion between them as well as benefiting from cash for consumer relief credits - to be put towards items such as principal reductions for certain types of Federal Housing Administration mortgages..." READ MORE

Tile: "New York, California reap mini-bonanza from Bank of America settlement"

Author: Megan Davies

Source: Reuters

Date Published: August 21, 2014

Appeals Court Ruling in Maryland Favorable for Illinois

“The U.S. Court of Appeals for the Fourth Circuit upheld a major reform made to Baltimore's police and firefighter pension plan on Wednesday, shedding light on how judges may view the recent raft of changes in public retirement funds around the country.

The court vacated a previous decision that the reform had violated the U.S. Constitution's contract clause, and also decided the change was permissible under Maryland's state constitution…” READ MORE

Tile: "U.S. appeals court says Baltimore pension reform legal"

Author: Lisa Lambert

Source: Reuters

Date Published: August 6, 2014

Unions File Motion in Sangamon County

"Yesterday, the We Are One Illinois coalition, along with other plaintiffs, filed a motion in Sangamon County urging the Circuit Court to enter judgment in the plaintiffs’ favor on the State’s affirmative defense in light of the recent Supreme Court decision in the case of Kanerva v. Weems. The We Are One Illinois coalition and other plaintiffs assert that the Kanerva decision confirms that the Pension Protection Clause in the Illinois Constitution is absolute and without exception, even with respect to the fiscal circumstances alleged by the State in its defense..." READ MORE

Title: "This just in...Unions file motion to 'gut' the state's pension case"
Author: Rich Miller
Source: Capitol Fax
Date Published: August 22, 2014

Pension Reform May Require Change in Illinois Constitution

“If the state's new pension law is found unconstitutional, which looks more likely in light of a recent Illinois Supreme Court decision, one obvious remedy is to amend the constitution.

“’We need that flexibility,” said Rep. Joseph Sosnowski, R-Rockford, who introduced a constitutional amendment proposal last year that died in committee. “Now, based off this court ruling, this may be our last ability to look at trying to modify pensions.”’ He plans to re-introduce his proposed amendment in the spring, “’especially in light of the court's decision.”’ READ MORE

Title: “Amending the Illinois Constitution a tough path for pension reform”

Author: Paul Merrion

Source: Crain’s Chicago Business

Date Published: July 16, 2014

Full Text Supreme Court Ruling July 3, 2014

For full text of the Illinois Supreme Court Ruling Opinion filed on July 3, 2014:
click here. 

Court Ruling May Prove Favorablefor Pension Lawsuit

“The Illinois Supreme Court ruled Thursday that the state cannot diminish or impair health insurance premium subsidies for retired state employees.

Government and union officials disagree about how the ruling, which says the subsidies are “a benefit of membership in a pension or retirement system” and as a result “are constitutionally protected from any diminishment or impairment,” will impact the state’s pending pension reform litigation, if at all. The law that enabled the state to charge retirees for insurance premiums was passed in 2012.” READ MORE

Title: “Illinois Supreme Court ruling could be omen for pension reform lawsuit”

Author: Meaghan Kilroy

Source: Pensions & Investments

Date Published: July 3, 2014

Victory for Members of State Retirement Systems

"Pension reform, RIP?

In a case with ominous implications for the state's pension reform law, the Illinois Supreme Court ruled today that the state constitution prevents any diminishment of health care benefits for retired state employees.

According to the 6-1 decision, the pension protection clause -- which says that retirement benefits are a contractual agreement that “cannot be diminished or impaired” -- applies to other retirement benefits, not just pensions. That overrode the state's argument that its emergency powers, in dealing with its budget crisis, justified an increase in what retirees must pay for their health benefits." READ MORE

Title: "Pension reform dealt blow by Illinois Supreme Court"

Author: Paul Merrion

Source: Crain's Chicago Business

Date Published: July 3, 2014

Court Ruling Favors Public Employees

"No escaping the consequences of a high court ruling that puts public employees in driver's seat.

The Illinois Supreme Court didn't say so specifically, but the import of two recent decisions (one by the high court itself and the other by a trial judge citing precedent) is clear: the Illinois Constitution is a political and financial suicide pact in which all state citizens are a party.

Ten days ago, Cook County Circuit Judge Mary Mikva blocked citizen initiatives aimed at creating competitive legislative elections or putting limits on how long our legislators can serve. The decision leaves the state's powers-that-be free to pursue the policies that have led to financial ruin and laughingstock status." READ MORE

Title: "Court ruling is a real killer"

Author: Editorial

Source: The News-Gazette

Date Published: July 6, 2014

UIC President Addresses Pension Law Error

“I write today out of concern over an unintended glitch in the wording of the state’s public pension funding law that would significantly reduce pension benefits under the “money purchase” option if retirement-eligible employees continue working beyond June 30, 2014.

The wording was actually meant to preserve (or “hold harmless”) employee benefits when the new pension law lowers the interest rate used to calculate monthly annuities under “money purchase,” effective July 1, 2014. It sought to lock in annuities for retirement-eligible employees to the level they would receive on June 30, 2014, even if they retired months or years later. “ READ MORE

Title: “Pension update re money purchase”

Author: Robert A. Easter

Source: Office of the University President

Date Published: April 24 2014

Pension Law Makes for "Devastated" University

“Suslick, Gordon and Cahill are just three of the 3,500 to 4,000 University employees who will lose significant benefits if they do not retire by July 1, a result of pension reform legislation passed by the Illinois General Assembly in December.

The reform made sweeping changes for state employees, including cutting cost-of-living adjustments and raising the retirement age for many younger employees, to help save the state’s massively underfunded pension system.

But one unintentional effect the bill had was significantly cutting the retirement benefits of those already eligible to retire if they do not retire by the time the bill goes into effect on July 1.” READ MORE

Title: “Pension reform typo leaves thousands hanging in the balance”

Author: Jonathan Hettinger

Source: The Daily Illini

Date Published: April 21, 2014

Push to Fix Pension Bill Error

“When Illinois legislators finally pushed through a large and complicated pension reform bill last December, they generally agreed that revisions would be off-limits until the courts had a chance to rule on the constitutionality of their handiwork. Follow-up tweaks to bills are common, but lawmakers were wisely loath to reopen a bill that required so many deals and compromises to get done in the first place.

But one error in the bill is so serious and pressing that it must be fixed, and quickly. The error — a drafting mistake that set a key date in 2013 instead of 2014 as intended — would trim university pensions so severely that top professors might begin fleeing in droves before the end of June.” READ MORE

Title: “For sake of higher education, fix pension bill error now”

Author: Editorial Staff

Source: Chicago Sun-Times

Date Published: April 22, 2014

U of I Considers Supplemental Pension Program

“The University of Illinois is moving toward a supplemental pension program that would contribute money to a tax-deferred retirement savings plan for thousands of employees stung by the state's recent pension reform.

The package under consideration also would include matching contributions for employees who put money into their 403(B) retirement accounts, as well as additional help for prominent faculty and others affected by a new salary cap on pension benefits.” READ MORE

Title: “UI group looking at pension supplement”

Author: Julie Wurth

Source: The News Gazette

Date Published: April 11, 2014

Flaw in Pension Law Wording

“Flaw in law's wording means some employees will lose major benefits unless they retire before July 1.

A wording glitch in a new state pension law is prompting hundreds, and perhaps thousands, of professors and other state university employees in Illinois to consider retiring before July 1 to avoid significant benefit cuts.

The cost of waiting could amount to several thousand dollars a year for individual retirees, on top of other cuts in pension benefits, according to official estimates.” READ MORE

Title: “Pension ‘fix’ may spark an exodus”

Author: Julie Wurth

Source: The News Gazette

Date Published: April 18, 2014

Quinn Open Minded About Pension Reform Law

“The first face-to-face meeting of the general election campaign featured Democratic Gov. Pat Quinn likened his opponent to a “virus” who attacks union rights and Republican challenger Bruce Rauner countering that the governor repeatedly had misled teachers, taxpayers and school children. The joint appearance Friday at the annual meeting of the Illinois Education Association presented challenges for both candidates.

Quinn faced an audience of teachers union representatives whose retirement benefits he just cut by signing a pension bill. The union is now suing the governor to try to overturn the new law. Seeking to heal the rift, Quinn said he was “open minded” about seeking a stay of the law until it worked its way through the courts.” READ MORE

Title: “Quinn, Rauner scrap on education in first debate”

Authors: Rick Pearson and Monique Garcia

Source: Chicago Tribune
Date Published: April 11, 2014

Pension Confusion Persists

"Senior UI employees who are considering retirement face a dearth of information about their state pensions.

Uncertainty over state financial support and pension reform make for trying times at the University of Illinois and other campuses across the state.

Of immediate concern is pension reform, which is roiling the UI campus now. The pension reform bill passed by the General Assembly last December takes effect June 1 and affects everyone covered by the State Universities Retirement System, as well as four other state pension systems, but is most pressing for senior faculty and staff members who soon need to make decisions on whether to stay or retire by June 30, the end of the fiscal year." READ MORE

Title: "Pension confusion reigns"

Author: The News-Gazette

Source: The News-Gazette

Date Published: March 23, 2014

Predicted Tax Hikes, Even With Pension Reform

'"I will be forthright and specific," declared Illinois Gov. Pat Quinn on Wednesday in the prelude to his budget address, which was anything but that.

The Democratic governor, who assumed office in January 2009 in the wake of his predecessor Rod Blagojevich's impeachment, is up for re-election this year. So naturally, his budget speech is really a stump speech. Hence, Mr. Quinn omitted references to the state's income and corporate tax hikes in January 2011, which will are slated to sunset at the end of the year.

Instead, he noted that "the issue of expiring revenue this year is a real challenge" because "extreme and radical cuts will be imposed on education and critical public services" if "action is not taken to stabilize our revenue code."' READ MORE

Title: "Brace for Tax Hikes, Illinois"

Author: Allysia Finley

Source: The Wall Street Journal

Date Published: March 28, 2014