Illinois’ $105-billion public pension fix struck down by state Supreme Court

Via LA Times,

By Michael Muskal, LA Times

May 9, 2015

Taxpayers are facing a $1-trillion public pension headache across the nation — and that remains untouched after an Illinois Supreme Court ruling on Friday.

The top court in Illinois unanimously threw out a legislative fix designed to erase a $105-billion pension liability the state is facing. In its 38-page written opinion, the court said that the state constitution bars public employee pension benefits from being diminished or impaired.

The ruling has a profound impact in Illinois, on its political system and on the city of Chicago, which also faces pension problems. But while many states face similar issues, the Illinois court decision had been expected, said Jean-Pierre Aubry, assistant director for state and local research at the Center for Retirement Research at Boston College.

Read the full article.

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