Labor Unions Plan To File Lawsuit Against City Pension Reform Law

X posted in Labor.

http://chicago.cbslocal.com/2014/06/10/labor-unions-plan-to-file-lawsuit-against-city-pension-reform-law/

CHICAGO (CBS) – Labor leaders were planning to go to court to block legislation cutting pension benefits and raising the retirement ages for many city workers, and opening the door for a property tax hike to help pay the city’s share of employee pension costs.

WBBM Newsradio Political Editor Craig Dellimore reports Anders Lindall, spokesman for AFSCME 31, which represents thousands of city employees, said a coalition of labor groups was preparing a lawsuit to challenge the city’s pension reform plan.

He said the measure proposed by Mayor Rahm Emanuel, and signed by Gov. Pat Quinn on Monday, would reduce the value of earned pensions by one-third within 20 years of retirement, and that’s a violation of the Illinois Constitution.

“The problem in the retirement systems is not the cost of the benefit. The problem is the city’s failure over decades to pay a responsible actuarially-based share of the contributions,” he said.

FULL story and audio at link.