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 The court ordered public labor unions and retiree groups
challenging the law and the state to file their briefs in January
and February with oral arguments to be scheduled in March. Illinois
Attorney General Lisa Madigan had asked the court last week to speed
up the appeal process.
The state asked for oral arguments as early as Jan. 22 and no later
than March 10 to enable Illinois' upcoming budget to incorporate
about $1 billion in cost-savings under the law, or adequate spending
cuts or tax increases to offset those savings.
The pension reform law was supposed to go into effect on June 1 but
was put on hold by Sangamon County Circuit Court Judge John Belz in
May pending his Nov. 21 ruling in five consolidated lawsuits. The
state's new fiscal year begins July 1 and the legislature usually
passes a budget by May 31.
 The law's opponents asked the supreme court on Tuesday not to speed
up the case.
Illinois has the worst-funded state retirement system in the
country, and its unfunded pension liability hit $104.6 billion at
the end of fiscal 2014. No U.S. state has a lower credit rating than
Illinois.
The reform law, which was enacted in December 2013, reduces and
suspends cost-of-living increases for pensions, raises retirement
ages and limits salaries on which pensions are based.
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Employees contribute 1 percent less of their salaries toward
pensions, while contributions from the state, which has skipped or
skimped on its pension payments over the years, are enforceable
through the Illinois Supreme Court.
In his ruling last month, Belz rejected Illinois' arguments that
pensions could be cut to protect the public welfare in an emergency,
including the state's precarious financial situation. He concluded
that the state could not go back on a promise protected by a
provision in the Illinois Constitution prohibiting public worker
pensions from being impaired or diminished.
(Reporting By Karen Pierog; Editing by Bernard Orr)
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