Employee Benefits

Owen v. Village of Maywood

Illinois Appellate Court
Civil Court
Employee Benefits
Citation
Case Number: 
2023 IL App (1st) 220350
Decision Date: 
Friday, May 26, 2023
District: 
1st Dist.
Division/County: 
6th DIv./Cook Co.
Holding: 
Affirmed.
Justice: 
ODEN JOHNSON

Plaintiff, a pensioned former employee of the defendant, appealed from the trial court’s entry of summary judgment in favor of the defendant in a declaratory judgment and breach of contract action arising out of plaintiff’s former employment as a firefighter. Plaintiff argued that the trial court erred when it found that defendant did not have to provide family health insurance for his spouse and erred when it denied his claim for damages under the Wage Payment and Collection Act. The appellate court affirmed, finding that plaintiff was not entitled to have defendant pay health insurance premiums for his family because he was not married at the time his pension benefits vested. (C.A. WALKER and TAILOR, concurring)

Arlington Heights Police Fund v. Pritzker

Illinois Supreme Court PLAs
Civil Court
Illinois Pension Code
Citation
PLA issue Date: 
May 24, 2023
Docket Number: 
No. 129471
District: 
2nd Dist.

This case presents question as to whether trial court properly granted defendants-state officials’ motion for summary judgment in plaintiffs-police and firefighter pension plan beneficiaries’ action, alleging that certain amendments to Illinois Pension Code, that essentially consolidated 650 local police and firefighter pension funds into two state-wide pension funds, violated Pension Protection Clause and/or Takings Clause of Illinois Constitution. Appellate Court, in affirming trial court, found that: (1) ability to vote in local elections for pension board members that was taken away by amendments was not benefit subject to Pension Benefits Clause; (2) requiring plaintiffs to pay for consolidated funds’ startup costs, as well as administration, operation and transition costs did not impair or diminish plaintiffs’ pension benefits, where local funds were already required to pay costs of administration of local funds, and where plaintiffs cited to no evidence showing that costs of consolidated funds would be greater than what plaintiff already pay; and (3) Takings Clause was not implicated in instant consolidation because plaintiffs did not own funds that amendments to Pension Code required to be transferred.

Ivetic v. Bensenville Fire Protection District No. 2

Illinois Appellate Court
Civil Court
Disability Benefits
Citation
Case Number: 
2023 IL App (1st) 220879
Decision Date: 
Monday, May 22, 2023
District: 
1st Dist.
Division/County: 
1st Div./Cook Co.
Holding: 
Affirmed.
Justice: 
LAVIN

Plaintiff, a former firefighter, was awarded a line-of-duty disability pension after the Bensenville Pension Fund determined that his employment was a cause or contributing cause of his debilitating cancer. However, the Board denied his application for health insurance premium benefits under section 10 of the Public Safety Employee Benefits Act and plaintiff appealed to the circuit court. The circuit court found in plaintiff’s favor and the Board appealed. On appeal, the Board argued that the plaintiff did not meet the statutory requirements of suffering a catastrophic injury that resulted in his response to what was reasonably believed to be an emergency. The appellate court disagreed and affirmed the trial court, finding that the defendant was required to pay for plaintiff’s health insurance premiums. (PUCINSKI and COGHLAN, concurring)

Su v. Johnson

Federal 7th Circuit Court
Civil Court
ERISA
Citation
Case Number: 
Nos. 22-2204 and 22-2205 Cons
Decision Date: 
May 10, 2023
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in granting plaintiff-Secretary of Labor’s motion for summary judgment and in issuing permanent injunction removing defendants from retirement plan that one defendant had set up for herself and other employees in her medical practice in ERISA action, alleging that defendants had breached fiduciary duties of loyalty and prudence. Record showed that both defendants breached said duties, where hundreds of thousands of dollars from plan assets were used for one defendant’s personal benefit, but were accounted for as either plan expenses or losses, rather than as distribution of retirement benefits to said defendant. Record also showed that defendants did not act in accordance with language in plan documents, where one defendant withdrew funds without consulting other defendant. Also, Dist. Ct. did not abuse its discretion by issuing permanent injunction that both removed defendants as trustees of plan and prohibited both defendants from serving in such positions of trust in future, where many payments that one defendant directed to herself over five-year period could properly be viewed as prohibited self-dealing.

Carlson v. Northrup Grumman Severance Plan

Federal 7th Circuit Court
Civil Court
ERISA
Citation
Case Number: 
No. 22-1764
Decision Date: 
May 8, 2023
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in granting defendants’ motion for summary judgment in plaintiffs-laid-off employees’ action, alleging that defendants violated ERISA by falling to give them severance pay upon their layoffs, where defendant gave severance pay to other co-workers when they were laid off. Under plan’s language, defendants had discretion to choose who, if anyone, got severance pay on being laid off, and plan required that defendant’s H R Department notify those who would be getting severance pay with specific memorandum, which plaintiffs did not receive. Ct. of Appeals further observed that plaintiff’s argument improperly assumed that defendant’s H R Department, which determined who would receive said memorandum, was their fiduciary, which it was not, and plaintiff could not prevail under ERISA, when they did not qualify for benefits under plan’s terms.

City of East Peoria v. Board of Trustees of the City of East Peoria

Illinois Appellate Court
Civil Court
Illinois Pension Code
Citation
Case Number: 
2023 IL App (4th) 220816
Decision Date: 
Monday, May 1, 2023
District: 
4th Dist.
Division/County: 
Tazewell Co.
Holding: 
Circuit court judgment revered, Board decision vacated, cause remanded.
Justice: 
DeARMOND

Plaintiff, City of East Peoria, appealed from a trial court order affirming a decision of the Board of Trustees of the Police Pension Fund of the City of East Peoria in which the Board granted a former police officer a pension based on the officer’s salary over the last three months of his employment. The City argued that under section 3-111(a) of the Illinois Pension Code the pension should instead be based on an average of the actual wages the officer received over the last year. The appellate court agreed and reversed the circuit court’s judgment, vacated the Board’s decision, and remanded with instructions. (STEIGMANN and KNECHT, concurring)

Salcedo v. Retirement Board of the Policemen's Annuity and Benefit Fund of the City of Chicago

Illinois Appellate Court
Civil Court
Survivor Benefits
Citation
Case Number: 
2023 IL App (1st) 220728
Decision Date: 
Friday, March 31, 2023
District: 
1st Dist.
Division/County: 
2d Div./Cook Co.
Holding: 
Affirmed.
Justice: 
COBBS

Plaintiff, the widow of a Chicago police officer, appealed from the Retirement Board of the Policemen’s Annuity and Benefit Fund of the City of Chicago’s decision denying her claim for a widow’s supplemental annuity benefit. The Board found her ineligible to receive the benefit because her husband had retired prior to his death. The appellate court affirmed, finding that the decedent’s retirement was an “unavoidable and intervening reason” that plaintiff did not qualify for a widow’s supplemental annuity, even if the decedent was permanently disabled due to an on-duty injury at the time of his death. (HOWSE and ELLIS, concurring)

Hughes v. Northwestern University

Federal 7th Circuit Court
Civil Court
ERISA
Citation
Case Number: 
No.18-2569
Decision Date: 
March 23, 2023
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed and reversed in part and remanded

Upon remand from Hughes, 142 S.Ct. 737, Ct. of Appeals found that Dist. Ct. erred in dismissing for failure to plead valid claim in Count III of plaintiffs-pension plan participants’ ERISA action, alleging that defendant-plan fiduciary violated its duty of prudence by failing to monitor and incurring excessive record-keeping fees charged to plan. Plaintiffs pleaded sufficient cause of action, where they alleged that there were numerous record-keepers in marketplace, who were equally capable of providing high level of service, that record-keeping fees incurred by instant plan were excessive relative to record-keeping services rendered, and that defendant could have solicited bids for lower record-keeping fees and for consolidating record-keepers. Ct. rejected defendant’s contention that plaintiffs were required to plead existence of another record-keeper that would have offered lower fees, or that consolidation of existing record-keepers was actually available. Dist. Ct. also erred in dismissing Count V of instant complaint that alleged that defendant failed to swap out existing retail shares that had high expenses and poor performance relative to otherwise identical institutional shares. Ct. noted that plaintiffs needed only to allege that cheaper institutional shares were plausibly available and further held that defendant’s claim that instant retail shares were superior to institutional class shares did not require dismissal of Count V, since plaintiff’s contrary allegations were equally plausible.

City of East Peoria v. Melton

Illinois Appellate Court
Civil Court
Disability Pension Benefits
Citation
Case Number: 
2023 IL App (4th) 220281
Decision Date: 
Wednesday, March 22, 2023
District: 
4th Dist.
Division/County: 
Tazewell Co.
Holding: 
Affirmed.
Justice: 
BRIDGES

Plaintiff, City of East Peoria, filed a lawsuit contesting an occupational disability pension awarded to its employee by the co-defendant Board of Trustees of the Firefighters’ Pension Fund of the City of East Peoria. The trial court affirmed the decision of the Board of Trustees and plaintiff appealed, arguing numerous errors, including that the physician appointed to examine the former employee was statutorily required to conduct an in-person physical examination. The appellate court affirmed, finding that an in-person physical examination was not required by the statute and that the board properly considered the competing evidence of the employee’s disability in reaching its conclusion. (HARRIS and STEIGMANN, concurring)

Claxton v. Board of Trustees of the City of Alton Firefighters' Pension Fund

Illinois Appellate Court
Civil Court
Pension Benefits
Citation
Case Number: 
2023 IL App (5th) 220200
Decision Date: 
Thursday, March 9, 2023
District: 
5th Dist.
Division/County: 
Madison Co.
Holding: 
Judgment vacated.
Justice: 
VAUGHAN

Defendants appealed from a circuit court order reversing their order denying surviving spouse firefighter pension benefits to the plaintiff. The appellate court vacated the circuit court order and affirmed the decision of the pension board, concluding that the petitioner had no vested right in pension benefits because she was not the spouse of the decedent at the time of his death and could only become a surviving spouse if the dissolution of marriage order was set aside. (CATES and MOORE, concurring)