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In an unsurprising decision, the Illinois Supreme Court today ruled unanimously to uphold the 2019 downstate police and firefighter pension fund consolidation law after certain members sued claiming their voting power was diluted. My story from November: https://t.co/YtJZO3lRT7 pic.twitter.com/Q9nzhauvCQ
— Hannah Meisel (@hannahmeisel) January 19, 2024
* Press release…
Governor JB Pritzker released the following statement on the Illinois Supreme Court’s ruling on local pension consolidation:
“The Illinois Supreme Court upholding the constitutionality of this landmark, bi-partisan pension reform law today is confirmation that smart, thoughtful pension reform can be accomplished in Illinois. After 70 years of attempts, my partners in the General Assembly and I were able to accomplish meaningful reform during my first term in office. We ushered in a new era of responsible fiscal management, one aspect of which has been consolidating over 600 local pension systems to increase returns and lower fees, reducing the burden on taxpayers and keeping another campaign promise. Today’s Supreme Court ruling is a victory for Illinois taxpayers, local governments and first responders.”
* It was a pretty slam dunk case…
THE ARLINGTON HEIGHTS POLICE PENSION FUND et al., Appellants, v. JAY ROBERT “J.B.” PRITZKER, Governor, et al., Appellees […]
Plaintiffs filed a complaint against defendants in the circuit court of Kane County seeking, inter alia, a finding that Public Act 101-610 (eff. Jan. 1, 2020) (Act), which amended portions of the Illinois Pension Code (40 ILCS 5/1-101 et. seq. (West 2020)), violated article XIII, section 5, of the Illinois Constitution (Ill. Const. 1970, art. XIII, § 5), commonly known as the pension protection clause, and/or article I, section 15, of the Illinois Constitution (Ill. Const. 1970, art. I, § 15), commonly known as the takings clause. The circuit court granted summary judgment in favor of defendants. The appellate court affirmed. 2023 IL App (2d) 220198, ¶ 20. For the following reasons, we also affirm. […]
It is axiomatic that, if plaintiffs have no constitutional right in how their local pension funds are funded or the adequacy of that funding, they similarly have no constitutional right regarding who invests local fund assets. The Act does not change plaintiffs’ right to elect members of their local funds’ boards or the local boards’ authority to determine the amount of benefits plaintiffs are entitled to receive. It only changes the local boards’ power to invest the assets of the local funds. Simply put, the 2020 amendment to the Pension Code has no impact on plaintiffs receiving their promised monetary benefits. […]
Plaintiffs have failed to identify any property right under Illinois law that is affected by the 2020 amendment to the Pension Code. It is undisputed that the Act does not impact the pension payments that plaintiffs are entitled to receive. Additionally, as defendants recognize, plaintiffs’ takings claim must also fail because even if they had a property right in the local funds’ assets, which they do not, the Act would not constitute a taking of that property for the government’s use. The Act simply changes how local fund assets are managed and invested without affecting the ultimate use of those assets to pay the benefits of local fund members
The Illinois Municipal League and the Associated Firefighters of Illinois supported the state’s position.
…Adding… House Speaker Chris Welch…
Today’s ruling shows that smart decision making can produce real savings for taxpayers, while protecting what workers have earned. By advancing commonsense reforms, collaborating with stakeholders, and delivering fiscally and socially responsible budgets, we’re continuing to rebuild Illinois’ fiscal house and move our state forward.
posted by Rich Miller
Friday, Jan 19, 24 @ 10:53 am
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“Fiefdom” is correct.
This case is about the worst kind of pinstripe patronage, where local pension boards hand out contracts to their pals to manage assets at above-market fees, all to the detriment of pension fund members and the public.
Kudos to lawmakers and the governor for this move.
Comment by Juvenal Friday, Jan 19, 24 @ 11:11 am
Always thought this was less about the stated reason(s) and more about the loss of discretion and the reduced “training” in Wisconsin.
Comment by Anyone Remember Friday, Jan 19, 24 @ 11:31 am
Honestly, it always seemed like a dumb case so I’m not surprised the ruling was unanimous. Feifdom is exactly the right word. So is trough-feeders (yea, I used the hyphen so it was still one wordish).
Comment by New Day Friday, Jan 19, 24 @ 11:35 am
Sound decision. Not sure we agree with Ms. Meisel’s reporting the decision was “unsurprising” Past SC decisions have clipped just about every pension.
Consolidation of downstate police & fire (which include the suburbs) was the easiest change. It probably brings small savings. But it took nearly 4 years. Uncertain if there are any other steps to be taken that get SC approval.
Suggestions?
Comment by Annon'in Friday, Jan 19, 24 @ 12:06 pm
Try that in a small town
Comment by Rabid Friday, Jan 19, 24 @ 1:12 pm
I am pretty sure they try this, and nearly every other kind of shenanigan, in small towns as small towns have people in them.
Comment by Jane's Hair Friday, Jan 19, 24 @ 2:27 pm
Not at all surprised by the unanimous decision. I always thought that the plaintiffs’ case was flimsy, at best.
Comment by Retired SURS Employee Friday, Jan 19, 24 @ 2:27 pm
The power of a dollar that continuously circulates in a community is amazing. Once you remove that dollar and send it somewhere else the positive effect is lost. Nice of the Governor to help his Wall Street investment pals profit on dollars pulled directly from small communities. Somehow that’s not crony capitalism.
Comment by Franklin Friday, Jan 19, 24 @ 2:56 pm