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IL Supreme Court Hears Pension Challenge

The Illinois Supreme Court heard arguments Wednesday over the constitutionality of the state's pension reform plan.

The State of Illinois' attempt to rein in pension costs will hinge on action more than four decades ago. The 1970 state constitution included a section that prohibits benefits from being "diminished or impaired."  But that's exactly what a law passed in 2013 does. 

Justices peppered the state's lawyer over her claim that lawmakers could cut public-pension benefits because of a fiscal emergency.    Solicitor General Carolyn Shapiro argued before the high court that the state's $111 billion deficit in four retirement accounts and other state debts are sufficient reason for the state to invoke its ``police powers'' to reduce pension benefits, as lawmakers did with an overhaul in 2013.  

Opponents to the law say the constitution is clear cut. Attorney Gino DeVito, who represented the opponents, recalled how the section was explained to voters during ratification over 40 year ago:  "The guide for voters to aid them in understanding what they were voting for simply said "this section is new and self-explanatory."

Justice Robert Thomas asked repeated questions about whether the state itself created the emergency by low-balling required annual pension payments for decades. Shapiro says the 2008 recession and uncertain inflation rates have been major contributors to the problem, too.  

The Court has not indicated a timetable for making its decision in the case.

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