Illinois Unions Poised to Battle New Pension Legislation

The Wall Street Journal reports that “[Illinois] state legislators passed an overhaul of the public-employee retirement system Tuesday, cutting benefits for workers and retirees in a move that sets up a likely court battle with organized labor.”

“Illinois has seen its credit rating fall in recent years to the lowest among U.S. states as it has struggled to address a gap in its pension funds that is nearing $100 billion.”

“Now, union leaders are gearing up to fight. Labor leaders expect to sue the state, arguing benefits promised to employees and retirees are protected under the state constitution.”

“To date, unions have successfully argued that government workers shouldn’t be punished for decades of mismanagement by the state, which underfunded the retirement system. But union leaders have seen support erode as concern over the state’s finances grows and their sway in a statehouse dominated by Democrats ebbs.”

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