Judge grants union motion to rescind retiree health care premium hikes

AFSCME Council 31 praised a Sangamon County Circuit Court judge’s decision today to issue a preliminary injunction preventing the state from continuing to collect higher insurance premiums from state of Illinois and state university retirees.

The higher premiums were allowed under Public Act 97-695, which gave the state unilateral authority to increase the amount retirees have to pay toward the cost of their health insurance. AFSCME, joined by the Illinois Federation of Teachers, the Fraternal Order of Police and the Illinois Nurses Association, sued to have the law overturned. While the suit was initially dismissed, in July the state Supreme Court overturned the lower court’s dismissal in a ruling that affirmed that retiree health benefits are covered under the state constitution’s pension protection clause. The high court remanded the case back to the circuit court for a hearing.

The union’s motion, filed earlier this month, asked that the court immediately declare the law unconstitutional or, in the alternative, grant a preliminary injunction halting its ongoing implementation. 

“In granting the union’s motion for the preliminary injunction, Circuit Court Judge Stephen Nardulli demonstrated that he intends to move quickly in response to the Supreme Court’s ruling,” said AFSCME Council 31 Executive Director Roberta Lynch. 

While the judge did not formally strike down the law in today’s hearing, the injunction he issued will ensure that SERS and SURS annuitants will see premiums return to prior levels around mid-September.

“Any time you get a preliminary injunction granted, you get a big victory,” said the union’s attorney in the case, Stephen Yokich.

The injunction means that single coverage premiums for retirees will return to levels that existed before the law was passed.

Union attorneys are now focusing on ensuring that premium increases already paid by retirees under the terms of Public Act 97-695, some of which are currently being held in escrow, are refunded to retirees as soon as possible. Judge Nardulli gave the state until Oct. 13 to outline its plan for issuing refunds. Union attorneys will have 20 days to respond to the state’s plan. The next hearing in the case is scheduled for Nov. 21.

“We are glad to see the circuit court put an end to premium increases based on a law that was not consistent with the intent of our state constitution,” Lynch said. “We will continue to press our case until retirees are refunded all the money they are owed and this law is officially off the books.”