All Is Proceeding

As I have been predicting since it was enacted, the patch that Illinois’s legislature attempted to put on the state’s public pension system has been struck down by the court:

Strikeout: Sangamon County Circuit Judge John Belz has ruled Illinois’ pension reform law unconstitutional.

“The Act without question diminishes and impairs the benefits of membership in State retirement systems,” he wrote in a firm, six-page ruling released Friday.

And the import of that? Illinois law, Belz wrote, clearly states that “any attempt to diminish or impair pension rights is unconstitutional.” He said Illinois courts consistently have held that the protection “is absolute and without exception.”

Notice the phrase “pension rights.” In essence Belz is saying that whatever benefits were in force the first day of a worker’s employment are in force until the moment of his or her death.

Now it’s on to the Illinois Supreme Court where I have little doubt the state’s case will suffer the same fate.

The Illinois legislature needs to stop wasting time and actually address this pressing problem. They created the problem and it’s up to them to solve it.

4 comments… add one
  • Guarneri Link

    It sounds like constitutional amendment. Wait, I’m dreaming.

    So where now? Does the obligation survive a bankruptcy? If so, and anyone with reasonable numeracy knows, that you can’t get there from here…………..without massive tax hikes. Checking the Florida residency rules now……

  • The available fixes would seem to include narrowing the Medicaid rolls (reversing the actions of the the Blagojevich years), constitutional amendment, tax increases, reducing the total compensation of present state employees, and reducing or eliminating state spending that isn’t related to Medicaid or public employee compensation. None of those will work to the benefit of present legislators and tax increases will only work if raising rates actually increases revenues, not a done deal.

    That’s why the state legislature doesn’t want to act. It’s understandable but it’s the job they were hired to do.

  • Guarneri Link

    Sounds intractable. However, it’s the kind of thing Raunef was born to do. Open the popcorn.

    Btw. New format or did my iPad go berserk?

  • I’ve got a post up about it. I determined that upgrading to the latest version of WordPress (a security necessity) broke my old theme.

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