Circuit Court Rules Pension Reform is Unconstitutional; Next Stop is Illinois Supreme Court

The Sangamon County Circuit Court has ruled that the Pension Protection Clause of the Illinois Constitution renders Senate Bill 1 and its “diminishments and impairments” to promised state employee pensions unconstitutional. “The state of Illinois made a constitutionally protected promise to its employees concerning their pension benefits,” wrote Circuit Court Judge John Belz in a six-page ruling. “Under established and uncontroverted Illinois law, the state of Illinois cannot break this promise.” Lawmakers approved the pension reform plan a year ago with an eye toward cutting into the state’s $100 billion pension debt. Public employees sued. While waiting for a decision, the courts struck down a 2013 change to state employee health benefits that allowed the state to start charging premiums to retirees with 20 years service. The courts ruled that was unconstitutional, foreshadowing the pension reform ruling. Illinois Attorney General Lisa Madigan has said the state will appeal the ruling directly to the Illinois Supreme Court, but few observers expect the high court to reverse the lower court ruling. State lawmakers, as well as governor-elect Bruce Rauner, are already looking ahead to formulating a new solution that will stand. Rest assured that Local 916 will be actively monitoring these developments. Teamsters Local 916 proudly represents over 4,000 hardworking men and women throughout the State of Illinois in the private and public sectors.