Los Angeles Times

Chicago pension overhaul voided


A Cook County judge has thrown out a 2014 law aimed at reducing multibilli­on-dollar shortfalls in two Chicago pension funds.

Judge Rita Novak said Friday the law is unconstitu­tional.

The overhaul sought to eliminate a $9.4-billion unfunded pension liability by cutting benefits and increasing contributi­ons. It would affect about 61,000 city employees and retirees.

Workers, retirees and labor unions sued, saying the state constituti­on protects retirement benefits. Novak agreed, citing a recent state Supreme Court ruling that said similar changes to state pension funds were unconstitu­tional.

Mayor Rahm Emanuel has said that without the overhaul pension funds will become insolvent.

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