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 Cook County Circuit Court Judge Neil Cohen found that a portion of a
constitutional claim in the lawsuit can proceed, according to Clint
Krislov, an attorney for city retirees who filed the lawsuit. The
ruling cited a 2014 Illinois Supreme Court decision that public
sector workers' healthcare benefits are protected by the state
constitution's pension clause.
The judge dismissed two contractual claims, but is allowing the city
retirees who filed the lawsuit to submit amended claims, which
Krislov said will be done.
"We're pleased we will be able to go forward to enforce the lifetime
benefits these wonderful people earned," Krislov said.
Reaction to the ruling from Chicago's law department was not
immediately available.
Chicago and its four retirement systems had filed motions to dismiss
the entire complaint.
The retirees are seeking refunds for rising health insurance
premiums because of a phase-out of a city subsidy. Krislov has said
the refunds would date back to 2013 and total about $110 million and
that Chicago Mayor Rahm Emanuel included $31 million in retiree
healthcare savings in his budget for the fiscal year that begins
Jan. 1.
With its finances buckling under a $20 billion unfunded pension
liability, Chicago has been scrambling to reduce costs. The upcoming
budget includes a record $543 million phased-in property tax hike
dedicated to public safety worker pensions.
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Chicago is also awaiting a decision by the Illinois Supreme Court on
the constitutionality of a 2014 law that boosted funding for the
city's municipal and laborers' pension systems and reduced
cost-of-living increases for retirees. The high court in May used
the state constitution's pension clause to toss out a 2013 law that
unilaterally cut benefits for state workers.
(Reporting By Karen Pierog; Editing by David Gregorio)
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