By Jim Anderson/Illinois Radio Network
CHICAGO – Gov. Bruce Rauner said it’s back to the drawing board after the state’s pension restructuring of a couple of years ago was ruled unconstitutional.
The Illinois Supreme Court announced a unanimous decision Friday striking down the law.
“We’ve got to have pension reform change done now,” Rauner said. “It’s essential, and we do it also with a constitutional referendum because we can’t afford to have years and years in court, and frankly, we cannot afford to have 25 cents – one-fourth of every dollar from the taxpayers – go to pensions. We just can’t do that.”
The governor said he’s not surprised by the decision. He believed the law was unconstitutional. His plan to reduce pensions involves kicking teachers and state workers into a so-called Tier 2 pension, with a higher retirement age and lower benefits, for work in the future. He believes that giving workers credit for everything they’ve earned heretofore will be constitutional.
Cinda Clickna, president of the Illinois Education Association applauded the ruling.
“I think the Supreme Court justices clearly indicated that the Constitution must be upheld,” Clickna said.
The law was meant to address the state’s $111 billion unfunded pension liability. The Supreme Court affirmed a decision in November by the circuit court in Sangamon County that the law violated pension protection measures written into the state Constitution. The decision sided with public-sector unions, who challenged the law. The ruling said the Constitution is unambiguous on the issue and dismissed the state’s argument that so-called police powers in place to protect public safety and welfare give lawmakers the authority to cut retirement benefits.
The law would have reduced annual benefit increases, raised the retirement age for workers under 40 at the time the law was enacted, and capped the size of pensions for high-salaried workers.
