(Illinois) State Supreme Court says retiree health benefits are protected by constitution [View all]

[LovingA2andMI]

Source: AFSCME Council 31 - Illinois

"In a major victory for state of Illinois and state university retirees, the Illinois Supreme Court has reversed a lower court’s dismissal of lawsuits challenging SB 1313, which effectively repealed promised retiree health care benefits. One of the suits was brought by AFSCME and its union partners – the IFT, the FOP and INA.

The court found that health care benefits for retired state and university employees are protected by the pension protection clause of the state constitution (Article XIII, Section 5) and cannot be diminished or impaired. The court sent the case back to Circuit Court for further proceedings.

“Giving the language of article XIII, section 5, its plain and ordinary meaning, all of these benefits, including subsidized health care, must be considered to be benefits of membership in a pension or retirement system of the State and, therefore, within that provision’s protections,” the court wrote in its opinion.

"The Supreme Court ruled today that men and women who work to provide essential public services – protecting children from abuse, keeping criminals locked up, caring for the most vulnerable and more – can count on the Illinois Constitution to mean what it says," Council 31 Executive Director Henry Bayer said. "Retirement security, including affordable health care and a modest pension, cannot be revoked by politicians.

"Unions representing public employees and retirees have stood virtually alone against political and corporate-funded attacks on retirement security," Bayer added. "Time and again we have urged legislators to respect the constitution they are sworn to uphold, and to work together with us to develop fair and constitutional solutions to the state's very real fiscal challenges. We remain ready to work in good faith with anyone to do so."

The opinion, and its validation of the pension protection clause, is an encouraging sign as AFSCME and other unions seek to overturn laws that would cut pension benefits for state of Illinois and state university retirees (SB 1 –Public Act 98-599) and City of Chicago retirees (SB 1922)."



Read more: http://www.afscme31.org/news/state-supreme-court-says-retiree-health-benefits-are-protected-by-constitution

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This could have HUGE implications for Detroit, Michigan retirees.....if they can change their votes --- to NO on the Grand Bargain--- before July 11th.

Illinois Supreme Court Ruling on Pension Benefits Could Change the Landscape of Detroit's Grand Bargain Deal

"The Supremacy Clause. According to Cornell University Law School, the Clause confirms in, "Article VI, Paragraph 2 of the Constitution... that the federal constitution, and federal law generally, take precedence over state laws, and even state constitutions." Scary language when City of Detroit retirees in less than a week are facing a life altering decision.

The open question is if these former and current workers vested in Detroit's Pension Plans vote yes to a 4.5% cut to monthly annuity income, or face upwards of a 27% reduction or more by voting no.
Furthermore, U.S. Sixth Circuit Court Bankruptcy Judge Steven Rhodes could pull a "trump card" of sorts if retirees were to deny what is known as the "Grand Bargain" using a Austerity focus safety net -- Supremacy. Or will he?
The decision made on Thursday, July 3, 2014 over the course of a busy holiday weekend in S.E. Michigan was heard like an ant crawling across a floor. Pretty much, not at all. Yet, the Illinois Supreme Court ruling was ground shaking.

As another state facing what the austerity hyper-focus call a pension short-fall, a bi-partisan Illnois State Legislator voted to diminish a core benefit retirees via Unionized contracts approved in good faith.

Public Act 97-695 of 2012 allowed the Illinois to charge retired workers for health care insurance premiums, which many did not have to pay depending on how long they worked for the state.Legal challenges to the Public Act took nearly two years to land within Illinois' Supreme Court Docket.

After a thorough review in a 6 to 1 strong majority decision, the state court decided to affirm language in Article 14, Section 9 of Illinois Constitution -- setting a possible future U.S. Supreme Court Case in motion, whether or not City of Detroit Retirees vote yes or no to its' Grand Bargain plan."

READ MORE: http://www.reachoutjobsearch.com/2014/07/oped-llinois-supreme-court-ruling-on.html#ixzz36iK6ZG00