Attorney: Local police and firefighter pension consolidation law
violates Illinois Constitution
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[June 15, 2023]
(The Center Square) – The attorney representing 14 local
public safety pension funds challenging an Illinois state law
consolidating all funds outside of Chicago into two says the law is
unconstitutional.
In 2019, Gov. J.B. Pritzker enacted the measure consolidating about 650
first responder pension funds into a fund for police and a separate one
for firefighters. The idea was to maximize investment returns for all
funds.
The measure was challenged and is now in front of the Illinois Supreme
Court.
“The Illinois Police Officer's Pension Investment Fund (IPOPIF) is not
surprised that the Illinois Supreme Court has agreed to hear arguments
regarding the constitutionality of [the law],” said a statement from
IPOPIF. “To date, 332 of the 357 [police funds] funds have transferred
approximately $9.1 billion in assets to the IPOPIF consolidated fund.”
The Illinois Firefighters’ Pension Investment Fund’s annual
comprehensive financial report for fiscal year 2022 said there was a
total of $8 billion in assets. Four local firefighter pension funds
remain unconsolidated, the report said.
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Amanda Hamilton with Konicek & Dillon represents the local pension funds
suing the state.
“We take issue with the fact that this legislation significantly
diminishes, if not eliminates, the effect of each participant’s vote,
that is to say their right to decide who controls these funds, who
manages these funds,” Hamilton told The Center Square.
Hamilton argues the law violates the Illinois Constitution.
“We also take an issue with the fact that it forces the individual funds
to bear the transfer and transition costs,” she said. “We don’t think
that’s appropriate either.”
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The Illinois Supreme Court building in
Springfield
Greg Bishop / The Center Square
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The police fund plaintiff groups are from Arlington Heights, Aurora,
Champaign, Chicago Heights, Chicago Ridge, Cicero, DeKalb, Elgin,
Elmhurst, Evanston, Mokena, Palos Heights, Rantoul, Villa Park, Wood
Dale and Woodridge. The firefighter fund plaintiff groups are from
Maywood and Pleasantview.
Hamilton argued the individual funds’ power is severely diluted by the
law, like being unable to change trustees if funds are not performing
well, among other things.
“Some funds that are doing very, very well are now going to be lumped in
with some funds who have been doing very, very poorly and we just don’t
think it’s fair to take away their voting rights,” she said.
With two lower courts siding with the state in the challenge, Hamilton
said it is going to be tricky and nuanced. But, she’s excited and
optimistic.
“I’m really eager to get the Illinois Supreme Court’s take on it because
they are the final authority,” Hamilton said.
The plaintiffs’ opening brief is due to the Illinois Supreme Court June
28.
The Illinois Municipal League said it believes the law will be upheld,
“as it has been twice already, and will eventually yield to better
financial results for both pension beneficiaries and taxpayers.”
Greg Bishop reports on Illinois government and other
issues for The Center Square. Bishop has years of award-winning
broadcast experience and hosts the WMAY Morning Newsfeed out of
Springfield.
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