Illinois Unions Challenge Pension Reforms

[Geee]

Free Beacon:

Labor special interests in Illinois have filed two lawsuits to dismantle pension reforms that are expected to save taxpayers tens of billions of dollars.

 

Gov. Pat Quinn (D.) signed “historic” changes to the Illinois public employees retirement systems in December that are designed “to address the most dire fiscal challenge of our time.”

 

Those changes, which include raising retirement ages, cutting automatic cost of living adjustments, and creating 401(k)-style pension plans, have been challenged by separate lawsuits filed by retired school administrators and teachers. The lawsuits allege that the pension reforms violate the state constitution, which states “the benefits of [pensions] shall not be diminished or impaired.”

 

“Careers, retirements, personal investments, and medical treatments have been planned in justifiable reliance not only on the promises that were made in collective bargaining agreements and the Illinois Pension Code, but also on the guarantee” of the state constitution, the lawsuit says.

 

[Valin]

@Geee

 

Illinois Fiscal Problems Run Deeper Than Pensions

 

Illinois modest but much-needed pension reform may not be the lifeline that the states thrift-conscious lawmakers were hoping for. A new report says the state is still running up a mammoth budget deficit. The St. Louis Post-Dispatch reports:

 

While the changes to the states major public pension systems will eliminate their unfunded liability over the next 25 years, the states deficit will increase to $13 billion during that time, according to the University of Illinois Institute for Government and Public Affairs study.

 

Researchers had projected a $14 billion deficit a $1 billion difference if the state had not implemented pension reform. The deficit has gotten off the front burner, institute director Chris Mooney said. And the pension solution, while important, in terms of (its effect on) the budget, its a red herring.

(Snip)