Employee Benefits

Village of Franklin Park v. Sardo

Illinois Appellate Court
Civil Court
Pension Code
Citation
Case Number: 
2020 IL App (1st) 191161
Decision Date: 
Monday, August 10, 2020
District: 
1st Dist.
Division/County: 
Cook Co., 1st Div.
Holding: 
Affirmed.
Justice: 
HYMAN

Police detective was diagnosed with PTSD from his service as a Marine, but functioned as a police officer at a high level until he investigated a grisly Metra train accident. Three examining physicians opined that he became unable to perform his duties because of the train accident,  which rendered him unfit to perform his duties. Police Pension Fund Board did not err in awarding line-of-duty disability pension to detective. Pension Code does not require an act of duty to be the sole cause of an officer's disability, and the Board may award a police officer a line-of-duty disability pension even if the officer had a preexisting mental condition. (GRIFFIN and WALKER, concurring.)

Underwood v. City of Chicago

Illinois Appellate Court
Civil Court
Pension Code
Citation
Case Number: 
2020 IL App (1st) 182180
Decision Date: 
Tuesday, June 30, 2020
District: 
1st Dist.
Division/County: 
Cook Co., 6th Div.
Holding: 
Certified questions answered; vacated in part; remanded.
Justice: 
MIKVA

In pension litigation, Plaintiffs claim that each of the defendant Funds has an obligation, per the 1983 and 1985 amendments to Illinois Pension Code and Illinois Constitution's pension protection clause, to select and establish a healthcare plan for its annuitants. Plaintiffs' motion to compel each of the Funds to provide its annuitants with a healthcare plan was not barred by he First District Appellate Court's 2017 decision in Underwood II (Underwood v. City of Chicago), as this issue was not decided in that opinion. The eligibility cutoff for City employees entitled to receive the fixed-rate subsidies is 6/30/03, the last day before the terms of the court-approved 2003 settlement were incorporated by legislative amendment into the Pension Code and thereby became an enforceable provision of the Code. Those portions of the circuit court's 2018 and 2019 orders to the contrary are vacated. (CUNNINGHAM and CONNORS, concurring.)

Williamson County Board of Commissioners v. Board of Trustees of the Illinois Municipal Retirement Fund

Illinois Supreme Court
Civil Court
Pension Code
Citation
Case Number: 
2020 IL 125330
Decision Date: 
Thursday, June 4, 2020
District: 
5th Dist.
Division/County: 
Williamson Co.
Holding: 
Circuit court affirmed.
Justice: 
KILBRIDE

Section 7-137.2(a) of the Illinois Pension Code, altering the certification process and eligibility requirements for elected county board members' participation in the Illinois Municipal Retirement Fund (IMRF), violates the pension protection clause of article XIII, section 5, of the Illinois Constitution. (A. BURKE, GARMAN, KARMEIER, THEIS, NEVILLE, and M. BURKE, concurring.)

Levin v. Retirement Board of the County Employees' & Officers' Annuity & Benefit Fund

Illinois Supreme Court
Civil Court
Employee Benefits
Citation
Case Number: 
2020 IL 125141
Decision Date: 
Thursday, May 21, 2020
District: 
1st Dist.
Division/County: 
Cook Co.
Holding: 
Appeal dismissed.

(Per Curiam opinion.) One Justice has recused himself, and the remaining justices are divided so that it is not possible to secure the constitutionally required concurrence of four judges for a decision. Thus, appeal is dismissed. Effect of dismissal is the same as an affirmance by an equally divided court of the decision under review but is of no precedential value. 

Retirement Plan for Chicago Transit Authority Employees v. Chicago Transit Authority

Illinois Appellate Court
Civil Court
Employee Benefits
Citation
Case Number: 
2020 IL App (1st) 182510
Decision Date: 
Tuesday, March 31, 2020
District: 
1st Dist.
Division/County: 
Cook Co., 1st Div.
Holding: 
Affirmed.
Justice: 
HYMAN

Plaintiff retirement plan, a pension fund, manages benefits for CTA retirees and their dependents. Plaintiff and CTA agreed that fund would pay CTA for the "actual cost" of retirees' prescriptions. Plaintiff contends CTA breached that agreement by retaining rebates the CTA received from its prescription drug provider (Caremark). Court properly granted summary judgment on its contract claims based on statute of limitations and its finding that the parties did not have a fiduciary relationship was not against manifest weight of evidence. Under discovery rule, statute of limitations began to run when Plaintiff learned it had not been credited for the rebates. Claims which accrued more than 5 years before Plaintiff filed its complaint are barred. Plaintiff failed to show that the CTA was acting as its agent in negotiating with Caremark or had sufficient dominance over it to create a fiduciary relationship.(GRIFFIN and WALKER, concurring.)

Excecutive Order 214

Topic: 
Executive Order for notaries and witnesses

was issued by Governor Pritzker yesterday. It orders the following for the duration of the Gubernatorial Disaster Proclamation for COVIR-19:

(1) the requirement that a person must "appear before" a notary public commissioned under the Illinois Notary Public Act is satisfied if: the notary public performs a remote notarization via two-way audio-video communication technology; the notary public is physically within the State while performing the notarial act; and the transaction follows the guidance posted by the Illinois Secretary of State on its website;

(2) any act of witnessing required by Illinois law may be completed remotely by via two-way audio-video communication technology if specified requirements are met;

(3) specified provisions of the Electronic Commerce Security Act that prohibit electronic signatures on certain documents remain in full effect;

(4) notwithstanding any law or rule of the State to the contrary, absent an express prohibition in a document against signing in counterparts, all legal documents, including deeds, last wills and testaments, trusts, durable powers of attorney for property, and powers of attorney for health care, may be signed in counterparts by the witnesses and the signatory; a notary public must be presented with a fax or electronic copy of the document signature pages showing the witness signatures on the same date the document is signed by the signatory if the notary public is being asked to certify to the appearance of the witnesses to a document.

Divane v. Northwestern University

Federal 7th Circuit Court
Civil Court
ERISA
Citation
Case Number: 
No. 18-2569
Decision Date: 
March 25, 2020
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in granting defendant-plan administrator’s motion to dismiss in ERISA action by plaintiffs-beneficiaries of employee investments plans by: (1) providing plaintiffs with too many investment options that left average investor unable to select appropriate investment option(s); (2) offering TIAA-CREF Traditional Annuity that required plan to also offer TIAA-CREF Stock Account fund and use TIAA as recordkeeper for all TIAA offerings, where Stock Account charged excessive fees and did not historically perform well; and (3) failing to apply flat $35 fee for recordkeeping costs for each plan. Record showed no ERISA violation, where no investor was required to invest in Stock Account or any other TIAA account, and allegations in plaintiffs’ complaint depicted valid reasons for plan to use TIAA as record keeper and to keep Stock Account, since Stock Account offered Traditional Annuity that was attractive to plan participants. Moreover, ERISA does not mandate what kind of benefits must be in plan, and plan may offer wide range of investment options without breaching any fiduciary duty. Also, ERISA does not require flat-fee recordkeeping structure or require defendant to seek sole record keeper. Too, Dist. Ct. did not err in striking plaintiffs’ jury demand where instant breach of fiduciary claim asserted only equitable remedy.

Valdivia v. Township High School Dist. 214

Federal 7th Circuit Court
Civil Court
Family and Medical Leave Act
Citation
Case Number: 
No. 19-1410
Decision Date: 
November 12, 2019
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Record contained sufficient evidence to support jury’s $12,000 verdict in favor of plaintiff-employee in action alleging that defendant-employer interfered with plaintiff’s FMLA rights by failing to provide her with notice or information about her right to take job-protected leave, after plaintiff had informed her supervisor that she was suffering from severe psychological problems that ultimately led to her resignation. Record showed that plaintiff had sufficiently serious health condition, where shortly after she left her job with defendant, she was hospitalized with mental problems that included anxiety and/or depression, and that her condition prevented her from performing her job at defendant. Also, plaintiff’s abnormal behavior in workplace provided defendant with sufficient notice to alert it to plaintiff’s serious health condition, as well as her need for FMLA leave, where plaintiff told her supervisor on several occasions about her deteriorating mental health, and where plaintiff asked for accommodation of working 10-month position instead of her 12-month position. Fact that plaintiff did not expressly mention FMLA when making said request did not require different result.

Electrical Construction Industry Prefunding Credit Reimbursement Program v. Veterans Electric, LLC

Federal 7th Circuit Court
Civil Court
ERISA
Citation
Case Number: 
Nos. 18-3703 & 19-1051 Cons
Decision Date: 
October 24, 2019
Federal District: 
E.D. Wisc.
Holding: 
Reversed and remanded

Dist. Ct. erred in granting defendant-employer’s motion for summary judgment in instant ERISA action by plaintiff-union benefit fund, alleging that defendant improperly refused to turn over requested payroll information of its non-union employee as part of plaintiff’s audit to determine whether defendant was properly making payments to plaintiff’s fund. While Dist. Ct. found that defendant need not turn over said records, record showed that defendant had agreed to be bound by terms of collective bargaining agreement, which did not limit ability of trustees of fund to audit payroll records of all of defendant’s employees.

Public Act 101-430

Topic: 
Human Rights Act

House Bill 252 (Guzzardi, D-Chicago; Castro, D-Elgin) defines “employer” to include any person employing one (instead of 15) or more employees within Illinois during 20 or more calendar weeks within the calendar year of or preceding the alleged violation. Exempts any place of worship. It was signed by the Governor yesterday and will take effect July 1, 2020.