Employee Benefits

Piccioli v. Board of Trustees of the Teachers’ Retirement System

Illinois Supreme Court
Civil Court
Pension Code
Citation
Case Number: 
2019 IL 122905
Decision Date: 
Thursday, April 4, 2019
District: 
4th Dist.
Division/County: 
Sangamon Co.
Holding: 
Circuit court reversed; remanded with directions.
Justice: 
BURKE

2007 amendment to the Illinois Pension Code allowed an officer or employee of a statewide teachers' union was was a certified teacher as of effective date of amendment to establish service credit in TRS (Teachers' Retirement System) for his or her union work prior to becoming certified as a teacher.  In 2012, legislation repealed the 2007 amendment. Defendants have standing to challenge the constitutionality of the 2007 amendment. The cutoff date in the 2007 amendment was rationally related to a legitimate government interest in offering pension benefits to current employees while containing costs by excluding future employees from those benefits. The 2007 amendment was not special legislation. The 2012 Act that repealed the 2007 amendment violates the pension protection clause in the Illinois Constitution. (KARMEIER, KILBRIDE, and NEVILLE, concurring; THEIS, THOMAS, and GARMAN, dissenting.)

McCumber v. The Board of Trustees of the Oswego Fire Protection District Firefighters’ Pension Fund

Illinois Appellate Court
Civil Court
Pension Code
Citation
Case Number: 
2019 IL App (2d) 180316
Decision Date: 
Friday, March 8, 2019
District: 
2d Dist.
Division/County: 
Kendall Co.
Holding: 
Affirmed.
Justice: 
SPENCE

Plaintiff, a former firefighter, sought a line-of-duty disability pension from Firefighters' Pension Fund Board, based on a psychological condition that manifested symptoms during 3 separate training exercises. Board's decision to deny Plaintiff a line-of-duty disability pension is not against the manifest weight of the evidence. Explicitly based on medical reports and other evidence, Board concluded that none of the 3 evaluating physicians opined that Plaintiff's inability to perform full-service duties for the District was either caused or exacerbated by the training exercises listed on his application for disability benefits. No due process violation in Board asking evaluating physicians for clarification of their medical opinions. (McLAREN and JORGENSEN, concurring.)

Beckman v. City of Peoria

Illinois Appellate Court
Civil Court
Public Safety Employee Benefits Act
Citation
Case Number: 
2019 IL App (3d) 180467
Decision Date: 
Friday, March 15, 2019
District: 
3d Dist.
Division/County: 
Peoria Co.
Holding: 
Affirmed.
Justice: 
WRIGHT

During field simulation for mandatory riot training, police officer suffered a career-ending "catastrophic injury". Hearing officer properly denied health coverage benefits under section 10 of Public Safety Employee Benefits Act. Plaintiff's injuries occurred in response to treating a training simulation as a real-life emergency, rather than in response to real life-threatening or dangerous situations. Thus, section 10(b) of the Act does not apply. The riot simulation u8nder controlled conditions created no actual imminent danger to Plaintiff or her colleagues. (CARTER and HOLDRIDGE, concurring.)

Johnson v. Municipal Employees’, Officers’, & Officials’ Annuity & Benefit Fund of Chicago

Illinois Appellate Court
Civil Court
Pension Code
Citation
Case Number: 
2018 IL App (1st) 170732
Decision Date: 
Wednesday, December 26, 2018
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div,
Holding: 
Affirmed.
Justice: 
HYMAN

(Modified upon denial of rehearing 2/19/19.) Illinois Supreme Court ruled that Pension Code amendments violated Illinois constitution's pension protection clause. Plaintiffs' counsel in one of the consolidated cases petitioned for attorney's fees, seeking over $200,000 under Illinois Civil Rights Act and an additional $750,000 from a "common fund". Court properly denied fee petition as impermissible under Pension Code, as issues raised by lawsuits (in Jones v. MEABF case) have no relation or connection to the Civil Rights Act, and Plaintiffs in those cases were not aggrieved parties suing under Illinois Constitution on subject of discrimination based on race, color, national origin, or gender. Pension Code bars garnishing plan participants' pention entitlements for any purpose.(MASON and LAVIN, concurring.)

 

Miller v. Illinois Municipal Retirement Fund

Illinois Appellate Court
Civil Court
Disability Benefits
Citation
Case Number: 
2019 IL App (5th) 180267
Decision Date: 
Sunday, February 17, 2019
District: 
5th Dist.
Division/County: 
Monroe Co.
Holding: 
Affirmed.
Justice: 
MOORE

Court affirmed decisions of Defendants (collectively "IMRF") that Plaintiff is not eligible for total and permanent disability benefits from IMRF (Illinois Municipal Retirement Fund). IMRF did not rely exclusively on opinions of its own medical and vocational consultants in making its final administrative decision.Conclusions of consultants are consistent with facts found in Plaintiff's treatment records, and IMRF's decision is not against manifest weight of evidence. (OVERSTREET and WELCH, concurring.)

Trustees of the Suburban Teamsters of Northern Illinois Pension Fund v. The E Company

Federal 7th Circuit Court
Civil Court
ERISA
Citation
Case Number: 
No. 18-2273
Decision Date: 
January 29, 2019
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in entering judgment in favor of plaintiff-pension fund in ERISA action seeking payment of withdrawal liability from defendants-defunct employer and others. Record showed that: (1) employer ceased operations and cut-off its pension contributions, which prompted plaintiff to assess withdrawal liability of $640,900; and (2) certain defendants ignored notices of withdrawal liability that had been issued by plaintiff and failed to arbitrate any defense to plaintiff being able to collect said withdrawal liability, which, in turn, precluded said defendants from raising any defense in plaintiff’s action to collect withdrawal liability in Dist. Ct. Moreover, with respect to other defendants which had not been served with said notices, record contained factual basis to support finding that said defendants could not assert credible claim of surprise with respect to said withdrawal liability so as to excuse ERISA’s arbitration requirement, and that each defendant was trade or business under common control with another party, which had received notice of withdrawal liability.

Senate Bill 30

Topic: 
Workplace Transparency Act.

(Bush, D-Grayslake) creates the Workplace Transparency Act. It provides that employers may not require an employee or prospective employee to sign a nondisclosure agreement that contains any provision that has the purpose or effect of limiting the disclosure of sexual misconduct, retaliation, or unlawful discrimination; suppressing information relevant to an investigation into a claim of sexual misconduct, retaliation, or unlawful discrimination; impairing the ability of any person to report a claim of sexual misconduct, retaliation, or unlawful discrimination; or waiving a substantive or procedural right or remedy of any person relating to a claim of sexual misconduct, retaliation, or unlawful discrimination. Makes such agreements void as against public policy and unenforceable, and that agreements that contain such provisions but entered into before the effective date of the Act are voidable by a party who entered into the agreement under specified circumstances. Senate Bill 30 was just introduced. 

Frisby v. Village of Bolingbrook Firefighters’ Pension Fund

Illinois Appellate Court
Civil Court
Pensions
Citation
Case Number: 
2018 IL App (2d) 180218
Decision Date: 
Monday, December 31, 2018
District: 
2d Dist.
Division/County: 
Du Page Co.
Holding: 
Reversed.
Justice: 
JORGENSEN

Plaintiff firefighter fell on ice in parking lot when exiting her car to report for work at fire station (20 minutes prior to shift start time). Pension Fund Board denied request for line-of-duty pension but granted request for not-on-duty pension. Court reversed, finding that Plaintiff was entitled to line-of-duty benefits. Board properly found that Plaintiff was not performing an "act of duty" as defined by Pension Code, even though Village Superintendent of Public Safety had recently told firefighters, via e-mail: "If you're not early--you're late. I appreciate you looking out for each other at shift changes." Plaintiff was not yet on duty, and no ordinance, rule, or regulation imposed on Plaintiff the act of exiting her vehicle in parking lot. (BURKE and HUDSON, concurring.)

MEABF Participants v. Municipal Employees’ Annuity and Benefit Fund of Chicago

Illinois Appellate Court
Civil Court
Pension Code
Citation
Case Number: 
2018 IL App (1st) 170732
Decision Date: 
Wednesday, December 26, 2018
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div,
Holding: 
Affirmed.
Justice: 
HYMAN

After Illinois Supreme Court ruled, in Jones v. MEABF, that Pension Code amendments violated Illinois Constitution's pension protection clause, Plaintiffs' counsel in one of the consolidated cases petitioned for attorneys' fees. Court properly denied attorneys' fees because issues raised by lawsuits have no relation or connection to the Civil Rights Act, under which counsel was claiming fees. The Civil Rights Act cannot serve as a means for awarding attorneys' fees as Plaintiffs in the Jones case were not aggrieved parties suing under the Illinois Constitution on the subject of discrimination based on race, color, national origin, or gender. Pension Code bars garnishing the plan participants' pension entitlements for any purpose.(MASON and LAVIN, concurring.)

Hampton v. The Chicago Transit Authority

Illinois Appellate Court
Civil Court
Collective Bargaining Agreements
Citation
Case Number: 
2018 IL App (1st) 172074
Decision Date: 
Thursday, December 20, 2018
District: 
1st Dist.
Division/County: 
Cook Co., 4th Div,
Holding: 
Affirmed in part and reversed in part; remanded.
Justice: 
McBRIDE

Plaintiff had been CTA bus driver for 28 years. His last day of employment was 12/31/06, and he began his retirement on 1/1/07. As Plaintiff's last day of work was 12/31/06, the day the 2004 collective bargaining agreement (CBA) expired, he was not represented by the Union on 1/1/07. Thus, he has standing to challenge the reduction in his health care benefits under the 2017 CBA. As Retirement Plan Agreement explicitly excluded retired employees from its definition of an employee, as of 1/1/07, he was a retiree, not an employee. The Designation of Beneficiary form he signed in 1978 does not cause him to be bound by the 2007 CBA or by any amendments made after his employment ceased on 12/31/06. CTA has no obligation to provide Plaintiff his health care benefits, Plaintiff has no cause of action against CTA for breach of contract or for constitutional violation of Pension Code. (GORDON and REYES, concurring.)