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 Sangamon County Circuit Court Judge John Belz, who is overseeing
five consolidated lawsuits filed by labor unions and others, set
Nov. 20 for arguments for and against the constitutionality of the
law passed by the Illinois legislature last December.
Public labor union coalition We Are One Illinois and other parties
have been seeking an expedited ruling in the wake of a July 3
Illinois Supreme Court decision in an unrelated case that determined
health care for retired state workers is a pension benefit protected
by a provision in the state constitution.
The same provision, which prohibits the impairment or diminishment
of retirement benefits for public workers, is the focus of the
lawsuits against the state's pension reform law. The new law, which
is currently on hold, reduces and suspends cost-of-living increases
for pensions, raises retirement ages and limits the salaries on
which pensions are based.
In documents filed with the court on Friday, Illinois Attorney
General Lisa Madigan argued that the high court's July 3 ruling only
dealt with retiree health care subsidies being part of the
contractual relationship Illinois has with members of the state's
public pension systems.
"The court did not address whether such benefits are immune from the
state's exercise of its police powers. That issue was not before the
court," Madigan's court filing noted.
In its defense of the pension reform law, Illinois is leaning
heavily on its so-called police powers trumping the constitutional
provision against reducing public employee retirement benefits.
Those powers include the state's ability to properly fund education,
healthcare and public safety. Those sectors would experience
substantial cuts if the state's already large pension burden grows,
Madigan said in the filings.
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"It is beyond reasonable dispute that all contractual benefits,
including all benefits conferred by contracts with the government,
are subject to the state's police-powers authority to enact laws
necessary to protect the public welfare," the state claimed in the
filings.
Illinois has the worst-funded retirement system among states and its
$100 billion unfunded pension liability has pounded its credit
ratings to the lowest level among states.
The union coalition said the July ruling by the state supreme court,
which will ultimately decide the pension reform dispute, "confirms
the pension protection clause of the Illinois Constitution is
absolute and without exception."
"We are hopeful for a swift resolution in the plaintiffs' favor, so
that we can work with legislators willing to develop a fair and
legal solution to our state's challenges together," the coalition
said in a statement.
(Reporting by Karen Pierog; Editing by Lisa Shumaker)
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