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Pension Crisis: Could Buyouts Be a Solution?
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State and local governments are trying unconventional ways to fund their pension liabilities, such as offering lump-sum cash payments to employees.
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Keeping retirement weird. Rahm screws city retirees on their health care.
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Bill Daley sits on the board of Blue Cross/Blue Shield. A note from Jack Retired Water: Fred, very sorry to hear about your friend. Speaking to that matter of health insurance the city of Chicago i…
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cookcountyrecord.com
Illinois governments do not have an obligation under the Illinois constitution to continue to pay certain benefits to retirees if those benefits had been secured under a negotiated agreement that included
FYI
From: Clint Krislov
Sent: Wednesday, September 21, 2016 3:20 PM
Subject: Retiree Questions about healthcare coverage for 2017
Not surprising, we are getting a barrage of calls from retirees, wanting to know what the City and Funds are planning to provide annuitants for their 2017 coverage and beyond.
Following the decision today, we suggest you each contact the City Benefits office, and your Fund, individually, and request an answer to what are they going to provide at the end of the year. We are not able to advise you on each individual decision regarding what choices or options you have concerning health coverage.
To the City: You should each ask whether you will have coverage under a city plan.
City of Chicago, Benefits Office can be reached at 877-299-5111
To the Funds: Your question is – what have they done or are doing to ensure that they provide a healthcare plan and subsidy (and under what terms and amounts) beginning January 2017?
Policemen’s Annuity and Benefit Fund City of Chicago
Phone: 312-744-3891
Toll Free 1-800-656-6606
President - Ken Hauser
kenhauser@chipabf.org
Executive Director - Regina Tuczak
rtuczak@chipabf.org
The Firemen’s Annuity and Benefit Fund of Chicago
Phone: (312)726-5823
info@fabf.org
The Municipal Employees’ Annuity and Benefit Fund of Chicago
Phone: (312) 236-4700
Laborers' & Retirement Board Employees' Annuity & Benefit Fund of Chicago
Phone: (312) 236-2065
Please feel free to email what they tell you.
Clint Krislov
Krislov & Associates, Ltd.
Civic Opera Building, Suite 1300
20 North Wacker Drive
Chicago, Illinois 60606
Telephone: 312-606-0500
Facsimile: 312-739-1098
Website: www.krislovlaw.com
Email: clint@krislovlaw.com
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dallasnews.com
The president of the Dallas Police Association announced Monday that he is retiring from the police force amid concerns about a failing pension fund, low police pay and officers flocking to other departments.
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The Week in Public Finance : Pensionomics, Hidden Bank Loans and Private Equity Fees
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A roundup of money (and other) news governments can use.
FYI
From: Clint
Sent: Monday, September 12, 2016 12:09 PM
Subject: Retiree Update-Emergency Motion to Appellate Court for Injunction or Decision - with attachment
Participants,
Since we’re now in the appellate court on virtually everything in the case, and since the deadline for re-enrolling is now September 23, but the city is still intent on turning off the annuitant healthcare at year-end for everyone but the pre-8/23/1989 retirees, we have filed the attached emergency motion for decision or injunction, to preserve the status quo; either at current or 2013 levels.
We’ll keep you posted as this develops.
Regards,
Clint Krislov
Krislov & Associates, Ltd.
Civic Opera Building, Suite 1300
20 North Wacker Drive
Chicago, Illinois 60606
Telephone: 312-606-0500
Facsimile: 312-739-1098
Website: www.krislovlaw.com
Email: clint@krislovlaw.com
www.krislovlaw.com
Krislov Law is a Chicago based law firm which advocates tirelessly for their clients in high stakes litigation on behalf of investors, consumers and taxpayers,and is dedicated to protecting consumer, investor and taxpayer rights in class action matters.
We have to be so careful and so alert.
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Marvin was a friend first and our labor attorney next. I will miss his humor and wise advice. Organized labor in Chicago owes him a great debt. Thank you Marv.
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Attorney Marvin Gittler, who fought for unions and workers with power, intelligence and wit in some of Chicago’s biggest, toughest
From: Clint
Sent: Wednesday, August 31, 2016
Subject: Retiree Update
Participants:
We were before Judge Cohen this morning, and got what we needed to bring the whole bundle of issues to the appellate court, and seek expedited briefing, and an injunction.
He had ordered us to confer and report back to him on what the city’s commitment is to the Korshak and Window retirees before August 23, 1989.
I was pretty surprised that he didn’t give the City’s lawyer any criticism for misstating then that the City is extending the 2003-2013 settlement benefits to those retirees for life, when it turns out the city believes that it is only giving a “willingness” to pay 55% of projected costs; meaning that your 45% is calculated on the basis of the Segal projections each year (which have always been high), without any Fund subsidy, and without the audit and reconciliation (which produced a rebate to you each year of about 1 to 1-1/2 month’s premium-about $5 million each year). We pointed out that even the 55% commitment is not a true figure, and you are all entitled to a true count.
Nonetheless, rather than take the City’s lawyer to task for his previous assurances that the benefits of the settlement were actually being extended for those retirees in full for life, the judge just held to his dismissal of those claims as moot, but then suggested that those claims (for classes 1 and 2) might be subject to the City’s assertion that they were barred by a statute of limitations claim, so should be held up for briefing and evidence on whether the classes 1,2, and 3 claims were time barred.
I objected to that, arguing that he was overstepping his bounds, because the city has not raised that defense to the class 1 and 2 claims, that they are purely legal claims, and if the issue of the intent of the original Korshak settlement is an evidentiary issue, that we believe he would have to recuse himself from deciding that issue.
The end of this part is that he held to his original dismissal of the class 1 and 2 claims, and gave us the language necessary to appeal those claims.
We then proceeded to the next group, class 3-people whose hire date was before 8/23/1989, but were not retired by then. This is the group the city now says were time barred, and over whose claims Judge Cohen was planning on proceeding to evidence and briefing on that issue before giving us language allowing us to appeal. There is a longer story on this (which you’ll see in the transcript when it comes out), but the short conclusion is that we got language making this issue appealable as well.
A lawyer for the Fire and Municipal Funds complained that the judge’s existing rulings leave them at risk of providing a plan and subsidy for some or all of their annuitants, and announced that the subsidy would end at year end for everyone. This declaration did not play well with the judge, and we are writing the Funds to put them on notice for the class 1, 2 and 3 participants, that the funds are required to obtain plans for their participants, and to subsidize the premiums, at least for those who were participants (i.e., began working for the City) prior to the law’s change on 8/23/1989. We’ll see what happens on that.
Whatever the court felt it was doing for us in enabling us to get an appeals court decision, he offset it by staying proceedings in his court, excusing the City and Funds from answering our complaint pending the appeal, and denied our renewed request for class certification and a preliminary injunction at this time.
So, we are finally able to get the case to the appellate court, seek to consolidate with the two pending appeals, seek expedited briefing, and direct appeal, all because you all need an answer in sufficient time to know what you need to do for coverage after year end.
We’ve enclosed a copy of the report we filed with the court last night, and today’s order.
We’ve got a lot of work ahead of us in a very short time.
Please email any questions, and of course:
Now would be an excellent time for contributions to the war chest.
Regards,
Clint
Clint Krislov
Krislov & Associates, Ltd.
Civic Opera Building, Suite 1300
20 North Wacker Drive
Chicago, Illinois 60606
Telephone: 312-606-0500
Facsimile: 312-739-1098
Website: www.krislovlaw.com
Email: clint@krislovlaw.com
The email below is a clarification from the lawyer handling the "Underwood" health care lawsuit. This was sent out today and hopefully is of some help.
From: Clint
Sent: Thursday, September 01, 2016
Subject: Retiree Update
Participants,
OK, the feedback from yesterday’s update is that it wasn’t clear what the current situation is.
The court situation: We’ll be on appeal today for all four classes for virtually all claims, including a request for an injunction to either restore the healthcare coverage and rates to the 2013 status quo at the original filing of this Underwood case, or at least enjoin the city from terminating coverage, and the Funds from terminating their subsidy payments at the end of the year.
We will be asking for an expedited motion and briefing schedule, because you all need to know what you are facing, and you need to know it well before year-end. Believe me, we understand that.
The current situation, looking forward:
Classes 1 and 2 (Korshak and Window, retirees by 8/23/1989) Subject of course to the appellate court giving us this relief, the City will continue coverage for those who retired before 8/23/89, but at rates calculated based on its projections, and without the Funds’ subsidy. Whether the Funds will continue to pay a subsidy at current or past levels is not exactly certain. They think they won’t be; Judge Cohen seems to think they have to continue, but at the 1983/1985 levels. Tentatively, these two groups will have coverage for life, but their rates will increase, and we’d expect the City to send out new rates by around the end of September.
Class 3 (hired by 8/23/1989). For these people, Judge Cohen views the Funds as obligated to provide health plans for their participants, with subsidies at the 1983/1985 levels (55/21 for police and fire; $25/month for municipal and laborers). It is not certain to us that the Funds are actually going to fulfill this obligation. We are writing them to ascertain what they intend to do.
Class 4 (hired after 8/23/1989). Unless we get some action by the appellate court, our understanding is that the city intends to cut off coverage entirely, and the Funds will not provide a plan or pay any subsidy.
The good news is that we are out of Judge Cohen’s courtroom and will see if we can get better treatment on appeal; which is generally what happened in the past.
I hope this makes things clearer. Keep emailing your questions.
Clint Krislov
Krislov & Associates, Ltd.
Civic Opera Building, Suite 1300
20 North Wacker Drive
Chicago, Illinois 60606
Telephone: 312-606-0500
Facsimile: 312-739-1098
Website: www.krislovlaw.com
Email: clint@krislovlaw.com
www.krislovlaw.com
Krislov Law is a Chicago based law firm which advocates tirelessly for their clients in high stakes litigation on behalf of investors, consumers and taxpayers,and is dedicated to protecting consumer, investor and taxpayer rights in class action matters.
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"Over the years, lawmakers used a variety of techniques to put off paying the bills. ... Such techniques can work for only so long, and Illinois is now coming to terms with over 20 years of poor fiscal performance."
I think today we all need something to smile at.
Indiana State Police troopers sing "Summer Nights"
FAVORITE VIDEO OF THE MORNING: Indiana State Police troopers do some Golf Cart Karaoke to "Summer Nights" from Grease while working the Indiana State Fair. Well done, fellas. Check out all of Trooper Jonathon Amburgey's videos here: bit.ly/2bHwrOG
FYI
From: Clint
Sent: Friday, August 19, 2016 10:19 AM
Subject: Retiree Healthcare Participant Update
Dear Participants,
Sorry to make this a group blast, but many of you are calling with the same questions: 1. What category am I in? and 2. Where does that leave me at the moment, and at January 1, 2017?
So here goes:
Here are the Categories:
Subclass 1-“Korshak” subclass-People who were retirees on 12/31/1987.
Subclass 2-“Window” subclass-People who retired during the “window” period, after 12/31/1987, but prior to the 8/23/1989 enactment of the PA86-273 statutory amendment to the Pension Code.
Subclass 3-Hired before 8/23/1989, but did not retire by then.
Subclass 4-Hired After 8/23/1989.
Within each of the first three, is a sub-subclass of those who were first hired by the city prior to 4/1/1986, so none of their city work qualifies them for Medicare coverage.
Here’s the situation for each:
and b. the city is committed to continuing their coverage for life, but only for “up to 50%” of their estimated costs (rather than the 2003 settlement of “at least 55%”), and with an uncertainty of the pension subsidies after 2016. Judge Cohen was under the impression that the City was continuing the 2003 settlement for them in full, and has directed us to meet with the City and report back on what the City is actually committed to.
Subclass 3 (most of you)-Cannot give you a clear answer on this at the moment. The city and Funds are intent on cutting you off at the end of the year entirely. The Judge views you as having a benefit protected for life, but only what the 1983 (police and fire) and 1985 (municipal and laborers) statutes required; which he views as the Fund’s obligation to obtain/provide/administer? a health plan for their participants, with the City obligated only to finance and subsidize your Fund’s $55/$21 or $25 monthly subsidy. We instead want the court to order the City to restore your plan to the way it was on 8/23/1989, and that’s what we’re working for.
We are next before Judge Cohen on August 31, and we’ll give it another go at asking him to enjoin the City and Funds from changing the 2013 status quo at the beginning of the case, at least until the courts decide this all on the merits. He may be coming around on this, but we’ll all just have to find out on August 31.
In the meantime, you might call your Fund and ask them what they are doing to fulfill their obligation to provide you with healthcare coverage. We’d be really interested in what you get for an answer, because at the moment most of the Funds appear to be just hoping to be rid of you, at least for healthcare coverage.
Subclass 4-You are in the most precarious situation. Judge Cohen has ruled that you have absolutely no protected entitlement to retiree healthcare, and has rendered findings making that decision appealable. Barring some change in this on August 31, we will appeal this ruling, and seek protection for your healthcare but, absent some change, the City and Funds are cutting you off on 12/31/2016.
If you have questions about this, please email us-- it’s the most efficient way to answer the questions you all have, since we don’t have a phonebank staff.
Regards,
Clint
p.s. It would also be a nice time to add more contributions to the warchest. I realize you are all hurting with the healthcare charges, but keeping this battle going is only possible with your contributions. After you call your Fund to ask what your trustees are doing for you, you might give a call as well to your unions to ask what they’ve done and what they’re doing to help us.
Clint Krislov
Krislov & Associates, Ltd.
Civic Opera Building, Suite 1300
20 North Wacker Drive
Chicago, Illinois 60606
Telephone: 312-606-0500
Facsimile: 312-739-1098
Website: www.krislovlaw.com
Email: clint@krislovlaw.com
krislovlaw.com
Krislov Law is a Chicago based law firm which advocates tirelessly for their clients in high stakes litigation on behalf of investors, consumers and taxpayers,and is dedicated to protecting consumer, investor and taxpayer rights in class action matters.
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