In re Pension Reform Litig.
Annotate this CaseIllinois has five state-funded retirement systems for public employees: the General Assembly Retirement System (GRS); the State Employees’ Retirement System of Illinois (SERS); the State Universities Retirement System (SURS); the Teachers’ Retirement System of the State of Illinois (TRS); and the Judges Retirement System of Illinois (JRS). All provide traditional defined benefit plans and are subject to the pension protection clause of the state constitution. Public Act 98-599 (eff. June 1, 2014), amended the Illinois Pension Code (40 ILCS 5/1-101), reducing retirement annuity benefits for individuals who first became members of four of the systems before January 1, 2011. Members of those systems brought separate actions challenging the amendment under the Illinois Constitution’s pension protection clause. The actions were consolidated. The circuit court of Sangamon County found plaintiffs’ challenge meritorious, declared Public Act 98-599 unconstitutional in its entirety, and permanently enjoined its enforcement, rejecting a contention that the Act could be upheld, notwithstanding its violation of the pension protection clause, based on the state’s reserved sovereign powers. On direct appeal, the Illinois Supreme Court affirmed, stating that although the financial challenges facing Illinois government are well known, “Obliging the government to control itself is what we are called upon to do today.”
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