Illinois Justices Overturn State's Landmark 2013 Pension Law

[Gidney N Cloyd]

http://abcnews.go.com/US/wireStory/illinois-justices-overturn-states-landmark-2013-pension-law-30903932

The Illinois Supreme Court forced the state Friday to find another way to fix the nation's worst government-employee pension crisis, ruling lawmakers "overstepped" by enacting a law that slashed retirement benefits to confront a massive budget deficit.

In a unanimous decision that frequently scolded state policymakers, the seven justices declared that the measure former Democratic Gov. Pat Quinn signed into law 18 months ago violates the state constitution because it would leave pension promises "diminished or impaired."


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Most states faced the same public employee pension crisis, exacerbated by the Great Recession, and took steps to remedy the problem. However, Illinois balked until Quinn and Democratic lawmakers finally overcame opposition from union allies and struck the deal, amid warnings that it might not survive a court challenge.

The Illinois justices ruled the law represented not the last resort, but "an expedient to break a political stalemate."

Although the decision provides no blueprint for what should be done next, the court said there were other options on the table for dealing with the economic crisis — including raising taxes. The temporary income tax surcharge Quinn implemented in 2011 was allowed to roll back in January, after voters elected Rauner, who campaigned against it.

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Against withering questioning by the Supreme Court in March, state lawyers in court had to defend decades of skipped pension contributions by the state which largely created the disaster. They attempted to end-run constitutional concerns by invoking "police powers" in times of crisis. The court scoffed, saying such measures were reserved for true, public-safety-threat situations.