Attorneys for the city of Chicago and those for local labor unions met in a Cook County courtroom July 9 to debate the fate of retirement benefits for city laborers.
The arguments were made before Circuit Court Judge Rita Novak.
The city’s attorney put forth that two city funds will become insolvent, if not bankrupt, in the next decade if the judge rules against the city, according to reports.
If the city’s pension law, which was approved by the General Assembly, is struck down by the court now then labor unions opposed to pension changes will sue down the road when pension funds are nearly gone, according to reports.
The legal team for the unions argued that changes to pension benefits are a violation of Illinois’ constitution. The city’s position, that pension funds will be depleted and insolvent in a decade, was merely a doom-and-gloom defense, according to reports. The city should have done more to shore up the retirement funds, the unions’ attorneys argued.
The Illinois Supreme Court this year already handed down a ruling in favor of unions in regard to state pension funds being reduced, according to reports.
— City, labor unions debate future of pension plans —