The Illinois Supreme Court on Friday struck down a 2013 pension reform law that sought to fix the stae’s employee pension crisis. The high court ruling forces the state to find another way to deal with the pension issue and other financial challenges the state faces.
The seven justices unanymously declared the law “diminished or impaired” pension benefits, violating the state constitution.
The ruling forces new Republican Gov. Bruce Rauner and Democrats who control the General Assembly to find new and different ways to bring down a $111 billion actuarial deficit in covering its state employee retirement obligations.
After the General Assembly and Quinn adopted the changes in December 2013, retired employees, state-worker labor unions and others filed a lawsuit seeking to overturn the law on constitutional grounds. The high court opinion means the state must keep its pledge on pensions.