XPost: alt.crime, alt.politics.elections, talk.politics.misc   
   XPost: alt.cities.chicago   
   From: frauds@democrats.com   
      
   A Cook County judge on Friday threw out a 2014 law aimed at   
   reducing multibillion-dollar shortfalls in two Chicago pension   
   funds, a decision city officials have said could leave the   
   retirement accounts insolvent in a little more than a decade or   
   lead to massive tax increases.   
      
   Judge Rita Novak wrote that the changes to pensions for some   
   61,000 current and retired municipal employees and laborers are   
   unconstitutional. She also said workers and retirees who have   
   been paying more into their retirement funds or have been   
   receiving less in benefits since the law took effect on Jan. 1   
   are entitled to recoup their losses.   
      
   Union leaders and former city workers who gathered outside the   
   courtroom declared it a win for retirees and workers who have   
   consistently made their contributions to the retirement   
   accounts, even when the city for years did not.   
      
   "We were promised something," said Charles Lomanto, who worked   
   for the city's streets and sanitation department for 28 years.   
   "We signed a contract."   
      
   Stephen Patton, Chicago's corporation counsel, said the city   
   plans to appeal.   
      
   "While we are disappointed by the trial court's ruling, we have   
   always recognized that this matter will ultimately be resolved   
   by the Illinois Supreme Court," he said in an emailed statement.   
   "We now look forward to having our arguments heard there."   
      
   Chicago has the worst-funded pension systems of any major U.S.   
   city, with a roughly $20 billion shortfall in its four accounts   
   and another approximately $7 billion debt in the fund for   
   teachers.   
      
   The 2014 overhaul sought to eliminate a $9.4 billion unfunded   
   pension liability in two of the funds by cutting benefits and   
   increasing contributions.   
      
   Workers, retirees and labor unions sued, saying the Illinois   
   Constitution protects retirement benefits. Novak agreed, citing   
   an Illinois Supreme Court ruling earlier this year that said   
   similar changes to state pension funds were unconstitutional.   
      
   Chicago officials argue that the city's pension overhaul varies   
   from the state's because it "preserves and protects" the funds.   
      
   Mayor Rahm Emanuel has said without the overhaul pension funds   
   will become insolvent by 2026 and 2029. City officials also have   
   said residents will likely see huge tax increases as Chicago is   
   forced to make much larger payments to the funds -- an increase   
   of $900 million per year, or about $2.48 million each day.   
      
   Emanuel, who must get approval from the Illinois Legislature and   
   Republican Gov. Bruce Rauner for any pension changes, still must   
   address shortfalls in the city's police and fire and teacher   
   pension funds.   
      
   Union leaders said Friday they are willing to sit down with the   
   mayor to negotiate another solution, but said it shouldn't   
   include cuts to what they call "modest" pension benefits. Anders   
   Lindall, spokesman for the American Federation of State, County   
   and Municipal Employees Council 31, said the typical beneficiary   
   receives a pension of about $32,000, and doesn't receive Social   
   Security benefits.   
      
   He suggested the city could look at closing corporate tax   
   loopholes, ending tax-increment financing districts that divert   
   property tax revenue from the city, and consider "other creative   
   ideas to ask rich folks to pay their fair share."   
      
   "The problem with pensions is a funding problem, it's not a   
   benefit problem," Lindall said.   
      
   http://www.foxnews.com/politics/2015/07/24/judge-says-2014-   
   chicago-pension-overhaul-unconstitutional/?intcmp=trending   
       
      
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