Double whammy: AG challenges rulings on pensions, back pay

This week, Attorney General Lisa Madigan’s office pressed on with appeals of two lower court rulings that came down decisively in favor of public employees and retirees.

The state filed a brief with the Illinois Supreme Court asking it to uphold the law known as SB 1, which reduces the pension benefits of SERS, SURS and TRS participants – both active and retired.

That law was found to be “unconstitutional and void in its entirety” by a Sangamon County Circuit Court Judge in response to a challenge filed by the We Are One Illinois union coalition, which includes AFSCME. Coalition lawyers have argued the law is a clear violation of the state constitution’s pension protection clause, which holds that retirement benefits cannot be “diminished or impaired.”

In its appeal, the AG is arguing that the state’s “police powers” allow it to override the state constitution in order to address the fiscal crisis facing Illinois government, even though the Circuit Court found that argument provided “no legally valid defense.”

Lawyers for the We Are One Illinois union coalition now have until Feb. 16 to file a response brief, followed by another brief from the state due Feb. 27. A hearing in the case is expected in March.

The next day, Madigan’s office also filed a petition with the Supreme Court asking it to hear an appeal of a lower court’s ruling that state employees owed back wages under the previous state master contract must be paid. Thousands of employees from the departments of Corrections, Juvenile Justice, Natural Resources, and Human Service are still owed money for wage increases withheld in fiscal 2011 and 2012.

In September, a panel of state appellate court judges ruled that employees must be paid the wages they are owed.

“An arbitrator, a circuit court judge and the appellate court have all ruled these wages must be paid,” Council 31 Executive Director Roberta Lynch said. “We are deeply disappointed the attorney general is wasting time and money on this appeal, but we are confident that justice for employees who have waited far too long will eventually prevail.”

AFSCME will have fourteen days to file its response to the AG’s petition and the union will urge the Supreme Court not to take the case. If the court does not take the case, the Appellate Court’s ruling will stand. If it does take the case, there will be further briefs and, very likely, oral arguments before the Supreme Court over the coming months.