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In oral arguments
before the court in November, Chicago asserted the law affecting
its municipal and laborers' retirement systems actually
benefited workers and retirees by taking steps to avoid
insolvency for the funds.
The state law required the city and affected workers to increase
their pension contributions and replaced an automatic 3 percent
annual cost-of-living increase for retirees with one tied to
inflation. The increase would be skipped in some years.
Without reforms, Chicago warned that the two funds would run out
of money within 10 to 13 years.
City unions and retirees that filed challenges to the 2014 law
contended Chicago merely wished to avoid paying for benefits
promised to its workers, in violation of the state
constitution's pension protection clause.
Last May, the supreme court found a 2013 law that reduced
retirement benefits to ease Illinois' $111 billion unfunded
liability in its five pension funds violated a state
constitutional provision protecting public sector workers'
pensions.
(Reporting by Karen Pierog and Dave McKinney; Editing by Chris
Reese and Dan Grebler)
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