The following was received today regarding Chicago retiree health care: Dear Retirees: Bottom Line: We’ve survived, but our battle is still at the beginning of a long fight, and we need your help to keep it going! As you’ll recall, our case was put on hold by the federal court of appeals, waiting the Illinois Supreme Court’s decision in the State Retirees’ Healthcare case (Kanerva v. Weems). We prepared and submitted a “friend of the court” amicus curiae brief on behalf of the City Retiree Certified Classes, focusing on two major points—that the Illinois Constitution’s Article XIII, Section 5 protection of “benefits of participation” is not limited to pension payments, and harmonizing the three retiree healthcare decisions by the Supreme Courts of Hawaii and Alaska (supporting our position that healthcare benefits are within the protection) , distinguishing the New York Court of Appeals adverse decision. On July 3, 2014, the Illinois Supreme court issued a very clear declaration that all benefits which a participant enjoys from his or her membership in an Illinois government pension or retirement system are protected benefits, not just pension annuity payments. And the decision seems to have followed our very targeted arguments that (1)the Constitution’s plain language protecting “benefits of participation” in an Illinois government retirement system means it is not limited to pension payments, and (2) that the court should follow the decisions of the Hawaii and Alaska Supreme Courts, and distinguish away the New York decision that would limit protection to the amount of one’s annuity. I’ve attached a copy of the court’s decision, as well as a copy of our “friend of the court” brief, which Justice Freeman references in the first paragraph of the Kanerva decision. This does not mean we’ve won yet; only that we are alive, survived a potentially fatal hurdle, and are now able to pursue the case with a better chance of winning. In order to better advise your members on where we are now, what’s next, and what we need: The significance of the Kanerva decision. Our battle is not over. The reported case deals only with the state retirees, who claimed a benefit under a different statute. The city has already declared that the decision has nothing to do with either the city pension reform or its retiree healthcare plans. Here’s where we expect this will be going. We will advise the federal court of appeals of the decision, as will the City. Our position will be that each of you is entitled to have restored the best healthcare benefits structure and payment level that existed at any time of your participation. For example, pre-8/23/1989 retirees should be restored to the 55/21 program that was then in effect. Depending on how the court treats the participants who began before that date, the restored program could be very beneficial, going forward. Restoration would likely be only prospective (i.e., no recoveries for charges during the settlement periods which last ended June 30, 2013), because all of the past settlements waived retrospective refunds for the settlement periods. The city’s position will be that City retiree healthcare was never intended to be a benefit of participation, and in the municipal and laborers’ statutory provisions, the statute explicitly says that it is not intended to be or be construed as benefits protected by Illinois Constitution’s Art.13 Section 5’s protection of benefits. For Chicago Police and Fire, the disavowing language did not appear until the 8/22/1989 version of the healthcare statutes. Going Forward: Our Arguments, the City’s determination to still get rid of all of you. So the next phase of the battle will be (1) for police and firemen who retired or started working for the City before 8/23/1989, that they should be protected by the Kanerva holding, and (2) for municipal and laborers, and those police and firemen who began working for the city after 8/22/1989, that the constitution does not permit the creation of benefits of participation that are not protected. Both are tough issues on which we’ll have a long fight. We’ve survived, but we haven’t won yet, and we still need your help. Our battle has survived the first potentially fatal hurdle, but we are not done by any means, and the City appears determined to fight us until the end. Our work to this point, especially in our briefs to the Illinois Supreme Court, has had positive impact for us. But, we are not done. And the battle now resumes. Our war chest has been exhausted, and we hope you will consider new contributions at this time, in order for us to be able to continue the battle. Regards, Clint Clint Krislov Krislov & Associates, Ltd. Civic Opera Building, Suite 1300 20 North Wacker Drive Chicago, IL 60606 Tel. 312-606-0500 Fax:312-606-0207 Email:clint@krislovlaw Website:krislovlaw
Posted on: Mon, 07 Jul 2014 22:51:17 +0000
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