Illinois Supreme Court Rules 2013 Pension Reform Law Unconstitutional; Chicago Teachers “Insulted by 7% Pay Hike Offer”

Pension news out of Chicago keeps getting worse.
In 2013, the Illinois legislature took a feeble stab at fixing some small aspects of the Illinois pension problem.
The legislation, signed by then Governor Pat Quinn reduced the 3 percent compounded cost-of-living adjustment for retirees established in 1989, raised the retirement age for workers 45 and under, and imposed a limit on pensions for the highest-paid workers.
That was a step in the right direction, albeit a small one.
2013 Pension Reform Unconstitutional
Today we learn the Illinois Supreme Court Finds 2013 Pension Reform Law Unconstitutional.
In a unanimous decision, the seven justices declared the law passed 18 months ago violates the state constitution because it would leave pension promises ‘diminished or impaired.’
‘In enacting the provisions, the General Assembly overstepped the scope of its legislative power. This court is therefore obligated to declare those provisions invalid,’ Justice Lloyd Karmeier said in writing the court’s opinion.

This post was published at Global Economic Analysis on May 08, 2015.