Senate Pres.: Cutting Pension Benefits Is Unconstitutional (Illinois)

CBS Local ^ | 3/03/11

[Libloather]

Senate Pres.: Cutting Pension Benefits Is Unconstitutional
March 3, 2011 7:29 AM

SPRINGFIELD, Ill. (WBBM) – Illinois Senate President John Cullerton (D-Chicago) says cutting pension benefits for current state employees is, in his words, “clearly unconstitutional.”

**SNIP**

Legal counsel Eric Madiar conducted the analysis for the Illinois Senate Democrats, and says it would indeed be unconstitutional for the General Assembly to cut back pension benefits for current state employees.

“Illinois is one of maybe five states or three states – such as New York, Arizona, Georgia – which really provides absolute constitutional protection to the pension benefits for public employees,” Madiar said.

He said the 1970 Illinois Constitutional Convention delegates were concerned about the fact that like now, the state was not making required contributions to the five pension systems, and might be tempted to squeeze pensions even more.

So, Madiar says, they approved specific language protecting the benefits.

[Lurker]

And if we had a new convention, they’d f*** us worse.

On that you and I are in complete agreement.

[airedale]

Article XIII General Provisions "SECTION 5. PENSION AND RETIREMENT RIGHTS Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired . (Source: Illinois Constitution.) http://www.ilga.gov/commission/lrb/conent.htm (Bold is mine)

[windsorknot]

It would appear that the the Illinois Constitution is a suicide pact.

[Jacquerie]

If benefits are indexed to inflation (probably so) the people of IL are totally screwed.

[airedale]

They are here in California and when there is a major case of inflation like there was in the Carter years both the people of Il and Ca are screwed. So are all the municipalities across the country who have indexed their pension.

[Nailbiter]

Not to worry, when the leeches have sucked all the life and money out of illinois they will head north or eat. Then Indiana and Wisconsin can enjoy the disater that Illinois has become/ s

[Nailbiter]

suicide for the taxpaying citizen

[MSF BU]

I suspect in this case, you will see pensions taxed at an increasing level. Look also for a ‘source tax’ so that pensioners who try to escape from Illinois will see their pensions taxed prior to the state issuing the payments.