The State
Universities Annuitants Association (SUAA) has engaged the law firm of Maduff
& Maduff, LLC in Chicago. Aaron Maduff is the lead attorney, with
SUAA's attorney John Carr providing much of the research. Aaron Maduff
was named in Chicago Magazine as one of the top 100 Attorneys in Illinois
with employment law as his specialty.
As of this writing, there have been [four] lawsuits filed... SUAA will be the [fifth] lawsuit filed. However, the SUAA lawsuit will be filed in Champaign County. In addition, the plaintiffs chosen for the lawsuit are all from Champaign County. The University of Illinois, Parkland Community College and the State Universities Retirement System are all located within a short distance of one another. The fiscal impact on this community alone is monumental. In addition, the plaintiffs are representative of all who are currently contributing to the State Universities Retirement System and those, of course, who are now beneficiaries.
As of this writing, there have been [four] lawsuits filed... SUAA will be the [fifth] lawsuit filed. However, the SUAA lawsuit will be filed in Champaign County. In addition, the plaintiffs chosen for the lawsuit are all from Champaign County. The University of Illinois, Parkland Community College and the State Universities Retirement System are all located within a short distance of one another. The fiscal impact on this community alone is monumental. In addition, the plaintiffs are representative of all who are currently contributing to the State Universities Retirement System and those, of course, who are now beneficiaries.
Filing multiple lawsuits is advantageous to the participants in and beneficiaries of the State-funded pension systems. SUAA believes that the State Universities Retirement System (SURS) has certain distinctions that sets this system apart from the others. SURS is the only system that has a Traditional Plan, Portable Plan, and a Self-Managed Plan to choose from. It is also the only system that has the Money Purchase Formula which, with the implementation of SB 1 (PA 98-0599), will severally reduce its value.
The lawsuit will file
complaints under the Pension Clause and the contracts clause in the Illinois
Constitution. Because SURS participants were compelled to make an
irrevocable election in the years 1999 – 2001, a claim will be made as a
violation under contract law. Other complaints will also cite as
violations:
·
The loss of Automatic Annual Increases (AAI or COLA) as agreed
in negotiations with the State of Illinois;
·
The implementation of skipping AAI payments based on the age of the SURS
employee at the time of retirement;
·
The salary cap on earnings in calculating pension benefits;
·
The raising of the retirement age. For every year under age 45, the
retirement age is raised 4 months, adding years of required service credit for
younger workers;
·
The change in the effective rate of interest in SURS pension benefit
calculations. SURS is the only state funded retirement system with
portable and self-managed plans in addition to defined benefit plan;
·
The potential of contract violations (i.e. Parkland Community College employees
received an early retirement incentive through collective bargaining. Upholding
SB 1 might affect collective bargaining agreements). Additional note:
contract negotiations are not to be changed;
·
The added potential of striking down the AAI is also a diminishment of benefits;
·
The grant percentages awarded to professors will not be included in pensionable
income.
SUAA’s intent is to
file the lawsuit by Friday, February 28. Most likely there will be a
press release following from SUAA along with other media reports. While we have
focused on SURS concerns, most likely there will be an attempt to combine all
pension lawsuits into one to be heard in Cook County. We are hopeful that
the SUAA lawsuit will be specific enough to be afforded its own resolve.
To contribute to SUAA
Legal Fund Click Here.
Linda L. Brookhart, Executive
Director
State Universities Annuitants
Association
217 East Monroe Street
Springfield, Illinois 62701
217.523.4040 Office
When the State of Illinois violates it's Constitution, they deserve to pay attorney's fees. Too bad we cannot sue each legislator who voted for the violations individually.
ReplyDelete