CHICAGO (March 24, 2016) – Today the Illinois Supreme Court struck down a law intended to implement modest reforms to some of Chicago’s city pension funds.

The pension law would have required taxpayers to put more into the pension funds going forward, and would have slightly increased retirement ages and city workers’ contributions to their own retirements. It would have also reduced cost-of-living adjustments for city-worker retirees.

The Illinois Policy Institute has been following Illinois’ and Chicago’s pension problems for years, and has presented constitutional and sustainable solutions to these crises. Pension and legal experts from the Institute are available for interviews in-person in Chicago, as well as by phone or Skype.

“After last year’s decision striking down state-level pension reforms, it’s no surprise that the Illinois Supreme Court also struck down Chicago’s attempted reforms. This decision just confirms that a state constitutional amendment will be necessary to really reform the pension systems and avoid fiscal and economic disaster,” said Jacob Huebert, senior attorney at the Liberty Justice Center. “In the meantime, the city and state can take steps in the right direction that would likely hold up in court. Today’s decision explicitly confirms that the state and city can make changes to pension benefits if workers agree to them — individually or through their collective bargaining agreements — in exchange for other benefits. They can also put all new workers in a 401(k)-style program, through which workers control their retirement funds.”

EXPERT AVAILABLE: 

Jacob Huebert, senior attorney, Liberty Justice Center

FACTS ABOUT CHICAGO PENSIONS: 

• The 2014 Chicago pension law only affects two of the city’s retirement funds: the municipal workers’ and laborers’ pension systems.
• The pension funds for police, firefighters, teachers, parks and transit workers are untouched by this law.
• The municipal workers’ pension fund has just 41 cents in the bank for every $1 that has been promised in retirement benefits.
• The laborers’ pension fund has just 64 cents in the bank for every $1 that has been promised in retirement benefits.
• The pension debt from the two pension systems affected by the 2014 law represents just $8.3 billion in pension debt.
• In total, Chicago residents are on the hook for more than $34 billion in pension debt, or more than $33,000 per household.

More Illinois Policy Institute research on Chicago pension reform can be found here: http://bit.ly/1RgThw3

For bookings or interviews: Nathaniel Hamilton or Diana Rickert (312) 607-4977