Employee Benefits

Arlington Heights Police Pension Fund v. Pritzker

Illinois Appellate Court
Civil Court
Illinois Pension Code
Citation
Case Number: 
2023 IL App (2d) 220198
Decision Date: 
Tuesday, February 7, 2023
District: 
2d Dist.
Division/County: 
Kane Co.
Holding: 
Affirmed.
Justice: 
McLAREN

Plaintiffs, individual active and retired beneficiaries from police and firefighter pensions funds, filed suit seeking a finding that amendments to portions of the Illinois Pension Code that were signed into law in 2019 were in violation of the pensions protection clause, contracts clause, and takings clause of the Illinois state constitution. The circuit court granted defendants’ motion to dismiss and plaintiffs appealed. The appellate court affirmed, holding that the amendments were constitutional and finding, among other things, that changes to the voting structure for board members were procedural and did not have a direct impact on the payment of benefits and, as such, were not a protected benefit and that plaintiffs did not have a private property right of the money held by the retirement funds, only to present or future payments from the funds. (HUTCHINSON and JORGENSEN, concurring)

Mahan v. Marion Police Pension Board

Illinois Appellate Court
Civil Court
Disability Pension Benefits
Citation
Case Number: 
2023 IL App (5th) 210426
Decision Date: 
Friday, February 3, 2023
District: 
5th Dist.
Division/County: 
Williamson Co.
Holding: 
Reversed.
Justice: 
CATES

Plaintiff appealed from the findings of the Marion Police Pension Board that terminated his in-the-line-of-duty disability pension payments by finding that he was no longer disabled due to an injury to his thoracic spine. The appellate court reversed, finding that the Board’s decision was against the manifest weight of the evidence where it relied on an IME report that did not discuss how the plaintiff had recovered from his disability or how he was not limited from performing the duties of a police officer. (WELCH and VAUGHAN, concurring)

Masterton v. Village of Glenview Police Pension Board

Illinois Appellate Court
Civil Court
Pension Benefits
Citation
Case Number: 
2022 IL App (1st) 220307
Decision Date: 
Thursday, December 15, 2022
District: 
1st Dist.
Division/County: 
4th Div./Cook Co.
Holding: 
Circuit court judgment reversed in part and vacated in part; board decision affirmed in part and vacated in part.
Justice: 
LAMPKIN

Plaintiff sought administrative review of the decision of the Village of Glenview Police Pension Board relating to surviving benefits of the minor child of a deceased police officer and then appealed from the decision of the circuit court. The appellate court reversed in part and vacated in part and affirmed the Board’s initial decision that the minor son was not qualified to apply for 100 percent act of duty benefit because he was not a surviving spouse. (HOFFMAN and ROCHFORD, concurring)

Vargas v. Town of Cicero Police Pension Fund

Illinois Appellate Court
Civil Court
Illinois Pension Code
Citation
Case Number: 
2022 IL App (1st) 220026
Decision Date: 
Thursday, December 8, 2022
District: 
1st Dist.
Division/County: 
1st Div./Cook Co.
Holding: 
Affirmed.
Justice: 
ROCHFORD

Plaintiff appealed from the order of the circuit court that confirmed the decision of the Board of Trustees of the Cicero Police Pension Fund denying her application for a surviving spouse’s pension under sections 3-112(e) and 3-114.3 of the Illinois Pension Code based on the death of her husband, who was a Cicero police officer. The appellate court affirmed, finding that the Board’s decision was not against the manifest weight of the evidence when it concluded, despite conflicting medical testimony, that plaintiff’s husband’s fatal heart attack was unrelated to any performance of an act of duty and that no act of duty aggravated or exacerbated his preexisting cardiovascular disease. (LAMPKIN and HOFFMAN, concurring)

Albert v. Oshkosh Corporation

Federal 7th Circuit Court
Civil Court
ERISA
Citation
Case Number: 
No. 21-2789
Decision Date: 
August 29, 2022
Federal District: 
E.D. Wisc.
Holding: 
Affirmed

Dist. Ct. did not err in granting defendants-plan administrators’ motion to dismiss plaintiff-plan beneficiary’s ERISA action, alleging that defendants breached their fiduciary duties by authorizing retirement plan to pay excessive fees for recordkeeping and administration, failing to adequately review plan’s investment portfolio to ensure that each investment option was prudent and unreasonably maintained investment advisors and consultants for plan despite availability of similar service providers with lower costs or better performance histories. With respect to plaintiff’s breach of prudence claim that concerned allegation that defendants paid excessive recordkeeping fees, plaintiffs failed to allege that recordkeeping fees paid by defendants were excessive relative to services rendered. With respect to plaintiff’s breach of prudence duty arising out of defendants’ payment of excessive fees for investment manager, plaintiffs failed to provide detailed allegations that plan beneficiaries would have received identical portfolio management services at lower cost. With respect to plaintiff’s claim that defendants paid excessive service provider fees, plaintiff failed to provide factual basis for comparison between fees paid to defendants' service provider and fees paid to other service providers. Ct. also rejected plaintiff’s claim that amounts paid to plan’s service provider were “prohibited transactions” under section 1106(a)(1)(D) of ERISA, where said individual provided essential services to plan.

Maskevich v. Ilinois Department of Security

Illinois Appellate Court
Civil Court
Unemployment Compensation
Citation
Case Number: 
2022 IL App (1st) 210779
Decision Date: 
Wednesday, August 24, 2022
District: 
1st Dist.
Division/County: 
3d Div./Cook Co.
Holding: 
Affirmed.
Justice: 
ELLIS

Plaintiff appealed from an order of the circuit court affirming the decision of the Board of Review of the Illinois Department of Employment Security finding that his appeal of a determination regarding unemployment benefits was not timely. The appellate court affirmed, finding that the Board lacked statutory authority and jurisdiction to hear the plaintiff’s appeal because he did not file it within the mandatory 30-day period and that the notice provided to the plaintiff of his appeal rights was not misleading or prejudicially confusing. (McBRIDE and BURKE, concurring)

Snow v. Chicago Transit Authority

Illinois Appellate Court
Civil Court
Employee Benefits
Citation
Case Number: 
2022 IL App (1st) 201217
Decision Date: 
Monday, August 22, 2022
District: 
1st Dist.
Division/County: 
1st Div./Cook Co.
Holding: 
Affirmed in part, reversed in part.
Justice: 
HYMAN

The Chicago Transit Authority terminated the pension benefits of plaintiff, a former employee, after learning he was also receiving pension benefits from Cook County and the State for the same years of service he used to qualify for the CTA’s Supplemental Retirement Plan. Plaintiff filed a petition seeking review of the CTA’s decision to terminate his pension benefits and both parties moved for summary judgment. The trial court first required the CTA to hold an evidentiary hearing. It then entered summary judgment in favor of the CTA by finding that the CTA had the authority to terminate plaintiff’s benefits, but also finding that the CTA violated plaintiff’s procedural due process rights by terminating his benefits without an evidentiary hearing and awarded plaintiff 19 months of retirement benefits and attorney’s fees and costs. The appellate court affirmed, but reversed the award of damages and attorney’s fees and costs because plaintiff’s damages were nominal.(PUCINSKI and COGHLAN, concurring)

Dean v. National Production Workers Union Severance Trust Plan

Federal 7th Circuit Court
Civil Court
ERISA
Citation
Case Number: 
No. 21-1872
Decision Date: 
August 15, 2022
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed and reversed in part and remanded

Dist. Ct. did not err in dismissing portion of plaintiffs-plan beneficiaries’ action, alleging that defendants-pension plans violated ERISA by failing to rollover said plans to plans maintained by different union, which had become plaintiffs’ new union. Plaintiffs could not pursue portion of lawsuit calling for Trustees’ rollover of assets to new plans or for defendants’ amendment of plans to include rollover of assets, where terms of plans did not call for rollover or for distribution of assets to plaintiffs under instant circumstances, and plaintiffs did not show existence of violation of terms of plans. Also plaintiffs could not proceed on portion of lawsuit alleging that defendants breached fiduciary duties by paying excessive administrative fees or for failing to disclose conflicts of interests, even though Trustees received salaries from plans, where: (1) plaintiffs failed to allege what other plans paid in terms of administrative fees or otherwise provide insight as to how said fees were excessive; and (2) for purpose of plaintiff’s conflict of interest claims, ERISA allows Trustees of plans to occupy multiple roles and to draw salaries from plans. However, Dist. Ct erred in granting defendants' summary judgment with respect to plaintiffs’ claim that one plan overpaid plan administrator, where defendants’ explanation that salary was reasonable was affirmative defense that could not be asserted in instant motion to dismiss.

Burke v. The Boeing Company

Federal 7th Circuit Court
Civil Court
ERISA
Citation
Case Number: 
No. 20-3389
Decision Date: 
August 1, 2022
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in granting defendants’ motion for summary judgment in plaintiffs (participants in defendant-company’s investment plan) action, alleging that defendants-plan committee, company and investment committee) violated ERISA by continuing to offer company stock as investment option for plaintiffs before and during time when value of stock dropped significantly after two airplane crashes led to worldwide grounding of company’s planes and halt to production of said airplanes. Plaintiff could not proceed against defendants-plan committee and company, based on claim that said defendants failed to disclose to plaintiffs and others insider information regarding design flaws of said airplanes, where record showed that said defendants did not have any fiduciary responsibilities over investment choices of company’s stock fund. Moreover, similar ruling applied to defendant-investment committee, where record showed that defendant-company delegated said fiduciary responsibility to said committee, but that said committee delegated fiduciary responsibility over investment choices to third-party fiduciary, whom plaintiffs did not sue. Ct. rejected plaintiffs’ claim that defendants’ duty of loyalty included non-delegable duty under ERISA to disclose non-public information to plan participants, especially where Ct. noted that prudent fiduciary could have readily concluded that immediate public disclosure of negative information about airplanes would have done more harm to value of company’s stock.

Board of Education for Rockford Public School Dist. No. 205 v. Illinois Board of Education

Illinois Appellate Court
Civil Court
Employment Law
Citation
Case Number: 
2022 IL App (2d) 210187
Decision Date: 
Wednesday, June 29, 2022
District: 
2d Dist.
Division/County: 
Winnebago Co.
Holding: 
Affirmed.
Justice: 
JORGENSEN

Defendant challenged termination of her employment as a tenured teacher and the hearing officer found in her favor. The circuit court reversed, finding that the officer’s factual findings were against the manifest weight of the evidence. The appellate court affirmed the circuit court’s judgment, finding that the hearing officer’s findings were against the manifest weight of the evidence where the officer relied on the testimony of an individual who was not involved in the employee remediation process that was at issue. (ZENOFF and BRENNAN, concurring)