SPRINGFIELD, Ill. (WAND) — A 2019 state law that consolidated nearly 650 police and fire pensions is facing a challenge before the Illinois Supreme Court. Dozens of pensioners argue that the change diminished their local voting power.
The Pritzker administration worked with lawmakers, municipal leaders and unions for first responders to consolidate 649 local police and fire pension plans to improve the rate of return on investments.
At the time, Pritzker noted that lawmakers had tried to tackle the issue for 75 years.
“It’s also great for property taxpayers in local communities where they were seeing an upward pressure on property taxes because of the fact the returns were not great in the individual funds,” Pritzker said.
Yet, some retired first responders aren't happy about the 2019 law.
"It completely and undeniably diluted their ability to put people on a five person board that they knew versus these new boards of people that are statewide and they don't know," said attorney Daniel Konicek.
Dozens of public safety pensioners and 17 individual pension funds sued the governor and other state leaders as they believe the law drastically changed how their money is managed.
"The benefit language in the constitution is not about where the money comes from in the fund that ultimately is going to pay out the benefits," Chief Justice Mary Jane Theis said Tuesday. "So, that's not constitutionally protected."
The Illinois Attorney General's office said the law has not reduced any payments made to retired members. Pension funds are also still able to determine the best options to make payments for those first responders.
Assistant Attorney General Richard Huszagh stressed that the Supreme Court would open a giant can of worms if they side with the plaintiffs. He explained that Illinois lawmakers have approved multiple changes to pension funds over the past 50 years.
"They don't have a constitutionally protected right to control the assets in their local funds," Huszagh said. "They have a constitutionally protected right to receive the benefits promised to them. And the court has said that is an ironclad guarantee that this act does not touch."
The legislation consolidating the police and fire pensions passed out of the Illinois House and Senate with strong bipartisan support in 2019.
Supreme Court justices took the case under advisement and should issue a ruling in the coming months.
Copyright 2023. WAND TV. All rights reserved.
