Ill. high court prepares to sort through pension mess

The Illinois Supreme Court is expected to hear arguments on what could be one of its most significant cases in decades, according to Crain’s Chicago Business.

That’s because a consensus among many following the case is that the high court will decide to reject the comprehensive pension reform approved last year by the state’s general assembly – a move that could strain the state’s budget and economy for decades.  

Illinois has an unfunded pension liability estimated at $111 billion. A guaranteed  3 percent cost-of-living allowance has helped balloon the pension debt, as have a lack of appropriate state contributions.

Lawmakers cut the COLA, among other measures, with the goal of having the pension 100 percent funded in three decades, but labor groups have fought back and said the pension changes were unconstitutional.

Read more from Crain's Chicago Business.