By RFD News Network
SPRINGFIELD – The Illinois Supreme Court has ruled that pension reforms passed by lawmakers in 2013 are unconstitutional.
In the unanimous decision Friday the court said if the proposed pension cuts were to take place then it would clearly result in a diminishment of the retirement plan, something employees became entitled too when they joined the pension system.
With the ruling the justices rejected the state’s opinion that they were allowed to make the changes under “police powers” given the financial crisis the state has found its self in with unfunded pension liability. The justices go on to add the General Assembly may find itself in crisis, but it is a crisis which other public pension systems managed to avoid.
Illinois State University President Larry Dietz was asked after Friday’s Board of Trustees meeting about his thoughts on the court’s ruling.
“I wasn’t aware of the unconstitutionality; I was aware of the unpopularity of the bill, particularly among faculty and staff of all public universities,” Dietz said. “So we’re delighted we’re not going to have to worry about that for this next year, it looks like.”
The next step will be what to do about a still looming $111 billion shortfall in pension funding. Gov. Bruce Rauner has proposed freezing all pension benefits where they stand and shifting all current employees into a less lucrative system. Rauner said the plan will pass a court challenge others aren’t so sure.
Joe Ragusa contributed to this report. He can be reached at [email protected].