Illinois Pension Reform Update: Judge Stays Implementation Of Pension Reform Law


On May 14, 2014, an Illinois Circuit Court Judge in Springfield issued an order staying the Pension Reform Law (Public Act 98-0599 – the “Act”) in its entirety and blocking the enforcement and administration of the Act until further order of the court or until the Act is held unconstitutional and a permanent injunction issued. The Act was to have gone into effect June 1, 2014, and many of our clients have already taken, or are in the process of taking, action on employment contracts and/or collective bargaining agreements in order to utilize the grandfather provisions pertaining to the pensionable salary cap portion of the Act. No guidance from the court that issued the stay or from any other governmental source has been given on whether there will be a new effective date if the Act is ultimately upheld. If your governing board has taken, or is in the process of taking, action to achieve grandfather status by the June 1 deadline, the prudent course is to continue to do so as no one can predict with any reasonable degree of certainty whether the June 1 effective date will remain or be extended if the Act is ultimately upheld.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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