The lawsuit over the state’s pension restructuring law proceeds, Attorney General Lisa Madigan hopes, to an expedited hearing before the Illinois Supreme Court.
The law, enacted last year, raises the retirement age and limits the increases that retirees receive in their annual benefits. The unions representing teachers and state workers are suing, claiming the law in unconstitutional. A Sangamon County judge ruled in the unions’ favor on a motion for summary judgment.
Madigan, who is defending the law, says this is a case that is likely to end up before the
Supreme Court on matters of law and constitutionality. “What the court is going to be ultimately looking at is, were the changes made through the pension legislation — were they reasonable and were they necessary under the circumstances? That’s what it all revolves around. It’s really a contractual analysis that’s going to be made,” she said, speaking about the case in general.
The plaintiffs are relying on constitutional language that pension benefits are contractual and may not be diminished or impaired.
The state enacted the law in response to an unfunded pension liability of $100 billion, much of which was the result of the state’s failure to make employer contributions over the years.