On Wednesday, July 1, 2020, Michalene McElligott <michalene@krislovlaw.com> wrote:
From: Clint Krislov <clint@krislovlaw.com>
Sent: Wednesday, July 1, 2020 4:26 PM
Participants,
Happy Fourth of July this weekend.
We hope you are all well, under the current circumstances. Please let us know your situations, since you all are in the vulnerable demographic.
Attached is yesterday's Appellate Court opinion.
The most relevant parts to read are probably paragraphs 50-53, in which they declare that the issue of the Funds' obligation to provide coverage has not been decided, was not decided in the 2017 Appellate decision, but, rather than decide it here, they remand it back for the circuit court to decide that issue.
So we're actually back to jump-ball on that issue, and we'll probably ask Judge Cohen to recuse and give it to someone else to decide.
On that, it's no secret that the Funds themselves, in the Korshak litigation, took the position that they were obligated to provide that coverage, and had contracted the City as the insurer. So we’ll pursue that claim, both against the Funds, and through their contract, against the City as well.
While we ‘d hoped the court would actually address and decide the obligation issue, as well as the circuit court’s exclusion of the Korshak and windows retirees from the subsidies, along with our request to reassign the case on remand (all of which would bring this to a sooner resolution), all of these issues will be addressed eventually.
The decision also expands the protected class to include all persons hired by June 30, 2003, rather than April 4, 2003, adding about three months of annuitants.
We will also demand that the class be certified now, and notice go out to everyone, so people know that their rights are being decided in the case.
Bottom Line: We’re alive and pursuing your claims against your Funds’ trustees to fulfill their obligation to provide healthcare coverage to all annuitants, and their engaging the City as the insurer.
Finally, this would be a nice time for contributions to replenish the warchest.
Regards,
Clint Krislov
Krislov & Associates, Ltd.
Civic Opera Building
20 North Wacker Drive, Suite 1006==Note New Suite Address
Chicago, IL 60606
Telephone: 312-606-0500
Facsimile: 312-739-1098
Email: clint@krislovlaw.com
Website: www.krislovlaw.com
Big news from Krislov and Associates:
Participants,
WE WON A REVERSAL!!! We're in the process of moving our offices to suite 1006, and we'll forward a copy of the opinion tomorrow, but the Appellate Court reversed Judge Cohen’s holding that the Funds' obligations are limited to the statutory subsidy, and the covered group extends to everyone hired by June 30, 2003, remanding the case to actually decide the Funds’ obligation to contract or provide coverage for retirees.
As you’ll recall, the Funds previously acknowledged their obligation, and asserted that they’d contracted the City as the insurer. And, Judge Cohen himself previously ruled that they had the obligation, and ordered them to start fulfilling that obligation.
We’re not done, not by a long shot, but we’re back in the fight for you!
FYI:
From: Clint Krislov <clint@krislovlaw.com>
Sent: Friday, June 12, 2020 3:31 PM
Participants,
Yesterday’s hearing went fairly well. Remarkably, the Funds could not agree on whether or what their obligations are to all of their annuitants.
The City seems to acknowledge that Judge Cohen’s limit on the annuitants entitled to the subsidies was too restrictive.
For those of you who couldn’t Zoom into the hearing, you can click and view the whole thing on the court’s website:
multimedia.illinois.gov/court/AppellateCourt/Audio/2020/1st/061120_1-18-2180.mp3
As always, we’re happy to answer any questions. Let us know what you think! We’ll keep you posted.
Also, we’re still getting calls from annuitants about the 2017-8 and 2019 subsidies, so we’d like to hear from you about how the Funds are processing them for you.
In the meantime, now would be an excellent time for another contribution to the warchest.
Regards,
Clint Krislov
Krislov & Associates, Ltd.
Civic Opera Building
20 North Wacker Drive, Suite 1300
Chicago, IL 60606
Telephone: 312-606-0500
Facsimile: 312-739-1098
Email: clint@krislovlaw.com
Website: www.krislovlaw.com
From: Clint Krislov <clint@krislovlaw.com>
Sent: Monday, April 11, 2010
Subject: Appellate Court - 1st District Case No. 1-18-2180: Oral Argument via Zoom June 11, 2020
Dear Participants,
The appellate court has set oral argument again, now for June 11, 2020 at 1:00 pm by Zoom videoconferencing. I will see if retirees will be able to click on and watch!
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
On Tuesday, February 11, 2020, Michalene McElligott <michalene@krislovlaw.com> wrote:
My State Senator Laura Fine has proposed legislation SB2747, which would enable a court to award attorneys fees in pension cases.
I’ve copied the bill below,
But there’s no assurance that this will pass.
So, if you want us to be able to continue this battle, please contact your state senator and representatives.
Some of you have experience in getting these things through, and I would appreciate your efforts and ideas.
Clint Krislov
Krislov & Associates, Ltd.
Civic Opera Building
20 North Wacker Drive, Suite 1300
Chicago, IL 60606
Telephone: 312-606-0500
Facsimile: 312-739-1098
Email: clint@krislovlaw.com
Website: www.krislovlaw.com
FYI
From: Clint Krislov <clint@krislovlaw.com>
Sent: Wednesday, January 15, 2020
Subject: Retiree Update
Participants,
Next Major Hearing: Illinois Appellate Court, February 27, 2020:
The SIXTH DIVISION shall hear oral argument in the following appeal(s) at 160 N. La Salle Street, 14th Floor, Courtroom I, on THURSDAY, February 27th, 2020 1:00pm 18-2180 & 19-0358 (cons.) Michael Underwood, et al. v. City of Chicago, et al.
Retiree Healthcare audit for 2014-2016.
We were before Judge Cohen Monday morning for the City to commit to a date for its audit of the 2014-2016 reconciliation of the Korshak retiree healthcare costs. Judge Cohen accepted the City’s April 15, 2020 commitment, and will begin fining the City $500 per day (we’d asked for $1,000; but whatever) if not completed by then.
The 2020 Rates are much greater than actual healthcare costs.
The remarkable thing about this is that the City’s reconciliation shows that the actual cost of providing healthcare is much much lower than is being charged on the City’s “non sponsored” plan.
Here’s what I wrote the City and Funds back in November 2019:
I received no response from the City or any Fund.
The Judicial Race:
Our petitions were challenged in a grueling process from December 21 through 28, 9a.m. to 5 or 7p.m. each day, excepting only Christmas day. We had some help in this from Dan Sheehan, Percy Allen, and Mark Mizula, in the signature battle. At the moment, it looks like we’re 108 signatures short of the 5,050 we need.
And, the FOP, who asked us to get back into the case in 2013, refused to give us a slot at the endorsement session, and has endorsed another candidate.
A handful of retirees have helped a great deal.
I cannot begin to tell you how much I appreciate the support and encouragement we’ve gotten from:
Donald Anderson
Curtis and Karen Blanc
John Clisham, Sr.
Peter J. DeFrancisco
Michael and Diana Doyle
Terrence Fahey
Barbara Frost
Casimer Golosinski
Curtis Gray
Tony Gvozdenovich
Marjorie Hickey
George “Steve” Kern
William and Margaret Kimball
Michael Kneebone
James and Mary Ann Kotowicz
Matthew and Marilou Marich
John Matula
Robert and Linda Nelson
Patrick and Patricia Pemberton
Cynthia Pilipuf
William and Audrey Rooney, Sr.
James and Catherine Sandow
Patrick and Kathy Scanlan
Marshall Schultz
Jerome Selke
John and Rita Solecki
Mr. and Mrs. Robert Soprych
Merrie Star
Michael Underwood
James and Laura Webb
And, of course:
Dave Lapaglia, Percy Allen, Jr., Chuck Lomanto (dec.) and Frank Zurawski (dec.).
A handful of retirees sent over a portion of the back subsidies recently received. For those who chose to just free-ride on whatever happens, don’t complain.
We will shortly be at the end of our resources to carry the case further. We’ll try to get through to the February 27 appellate hearings, but that may well be the end for us.
Contributions to the war chest are needed and appreciated.
Clint
Clint Krislov
Krislov & Associates, Ltd.
Civic Opera Building
20 North Wacker Drive, Suite 1300
Chicago, IL 60606
Telephone: 312-606-0500
Facsimile: 312-739-1098
Email: clint@krislovlaw.com
Website: www.krislovlaw.com
On Tuesday, December 10, 2019, Michalene McElligott <michalene@krislovlaw.com> wrote:
Participants,
We are still waiting for action from the appellate court on our appeal to require your Funds to provide coverage. That’s fully briefed.
On our fee protection issue, the appellate court ruled that they did not have jurisdiction. We’ve requested rehearing, but we’ll see.
The City, Funds and Circuit Court all seem determined to win this by a battle of attrition. Our resources are nearly at the end. Some of you have kindly contributed from your backpaid subsidies we’ve obtained for you. And we especially appreciate that, because (due to the judge’s rulings) the money is being paid out without protecting our fee claim, which may just become moot when all the money has been paid out.
If we don’t hear something soon, we’ll try again with the Illinois Supreme Court.
For those of you who helped us get signatures to get on the ballot for the Illinois Supreme Court primary (Dan Sheehan and Tony Gvozdonovich; you guys are the best!), I am grateful. I like to think that the support from all of you reflects well on what I’ve actually done. Ours is a campaign based on judging people for what they’ve actually done to improve our system of justice.
We’ve been challenged, but we’ll fight our best to stay on the ballot. We’ll keep you posted.
Feel free to email with any questions.
Regards,
Clint
Clint Krislov
Krislov & Associates, Ltd.
Civic Opera Building
20 North Wacker Drive, Suite 1300
Chicago, IL 60606
Telephone: 312-606-0500
Facsimile: 312-739-1098
Email: clint@krislovlaw.com
Website: www.krislovlaw.com
teacherpoetmusicianglenbrown.blogspot.com/search/label/pensions
LEGISLATIVE ALERT - PENSION CONSOLIDATION - LEGISLATIVE ALERT
As many of you have heard, the Governor is proposing the mandatory consolidation of all downstate and suburban police pension funds into one plan which will initially be controlled by the State. The local pension fund boards who currently serve officers would continue to exist for now, but they would no longer have any authority to invest money for local police officers. Instead, all of the money would be held and invested by one statewide fund.
The consolidated fund would initially be controlled by individuals exclusively appointed by the Governor. After 3 years, the fund would be managed by a board including mostly mayors, with some elected active employees and an elected annuitant trustee. The proposed board would have the lowest participant control/participation of any pension fund in the State. This represents a loss of police officers’ control over their own money.
Not surprisingly, the labor unions representing law enforcement have been working hard against this proposal. The Illinois Police Benevolent and Protective Association, Fraternal Order of Police and the Metropolitan Association of Police have been working together, hand in hand, to defeat this legislation.
Our biggest obstacle is the Governor’s simplistic catch phrases sound great. Phrases like “eliminate unnecessary government,” “reduce operational costs,” and “reduce property taxes” all sound great, but they are not based on any reliable analysis or any verified numbers. This proposal will require municipalities to spend a massive amount of money up front in the hopes they will recover their cash outlay over a period of at least a decade. Over the long term, it might reduce some costs and it could potentially allow some funds to achieve higher returns, but it will take years.
This complex issue requires diligent study from actuaries, investment professionals, and other industry experts. It requires inclusion of, and buy-in from, all stakeholder groups. More than anything, this proposal needs time to be fully vetted and fairly analyzed. It needs to be publicly debated based upon reliable information. It can not be like so many of Illinois’ recent pension ideas like Tier II, Tier III and SB1 which all failed because they were pushed through quickly without proper discussion with professionals and affected parties, resulting in numerous unintended consequences.
Consolidating $8 billion requires thoughtful, transparent due diligence. Certainly, the upcoming veto session does not provide an adequate amount of time to vet the Governor’s consolidation gambit.
We do appreciate the Governor’s inclusion of some much needed benefit fixes for downstate and suburban police officers who are under Tier II. The Governor has proposed some fixes, but realistically, the fixes he has proposed are not enough to hand over control of $8 billion to the State of Illinois, especially considering the state’s abysmal track record in managing its own pension funds.
We can certainly use the help of all our members in communicating your concerns. We have seen many great letters to the editor reiterating our concerns. We also encourage our law enforcement community both active and retired to contact their State Senators and Representatives and let them know this proposal is bad for police officers, bad for communities, and bad for taxpayers.
IF YOU DO NOT KNOW WHO YOUR STATE SENATOR AND REPRESENTATIVE ARE FOLLOW THIS LINK TYPE IN AND CONFIRM YOUR ADDRESS AND YOU CAN SEE WHO THEY ARE AND WHERE TO CALL THEM!
www.elections.il.gov/ElectionOperations/DistrictLocator/AddressFinder.aspx
FYI
Participants,
So we were before Judge Cohen this morning on a number of issues.
He’d read that we have asked the appellate court to remove him and reassign the case, and vacate all of his past rulings.
And declared that he could not rule on anything while this was pending, and essentially froze the case in all respects.
The good news I suppose is that it gives us a basis to ask the appellate court for an emergency hearing on the open issues.
We’ll see.
Clint Krislov
Krislov & Associates, Ltd.
Civic Opera Building
20 North Wacker Drive, Suite 1300
Chicago, IL 60606
Telephone: 312-606-0500
Facsimile: 312-739-1098
Email: clint@krislovlaw.com
Website: www.krislovlaw.com
Please contact your legislators and let them know we are opposed to this consolidation effort.
It is a plan conceived in back rooms, by big money hedge fund managers, with no public input, no press, and no transparency.
AND ABSOLUTELY NO REPRESENTATION OF POLICE AND FIRE PENSION BENEFICIARIES!
What promises were made and to who?
If this is a legitimate idea put out the details. Have PUBLIC meetings across the state. Give each pension plan participant the ability to vote on whether or not THEIR money should be combined!
Jim Dey | Devilish details threaten plan for quick pension action
The associate director of the Government Finance Research Center at the University of Illinois-Chicago contends that Gov. J.B. Pritzker's consolidation idea has 'merit,' but the report his task force issuedOctober 18, 2019
FOR IMMEDIATE RELEASE
Latest Department of Insurance Figures Show Downstate Pension Systems are Lowest in Administrative Costs
SPRINGFIELD – The latest figures released by the Illinois Department of Insurance show that the Illinois Municipal Retirement Fund (IMRF) and downstate police and fire pension systems have the lowest administrative costs of any pension systems in the state. This new data is key information that should be carefully considered during any discussion of pension fund consolidation, according to the Illinois Police Benevolent and Protective Association (IPBPA).
“Much of the current talk focuses on the alleged administrative cost savings by pension consolidation, yet this latest information shows the IMRF, police and fire pension funds already have lower administrative costs than anybody else,” said PBPA Executive Director Sean Smoot. “In fact, those local system costs are far lower than those for the State of Illinois' pension systems. Those who favor the consolidation of police and fire pension funds will need to explain how moving millions from a lower-cost system to a higher-cost system will save the taxpayers money.”
The Bi-Annual Department of Insurance Public Pension Division's October 2019 report shows that 6.2 percent of the total funds administered by the IMRF go toward administrative costs. The figure for downstate police pension systems is 7.97 percent, and for fire pension systems it is 8.37 percent. The administrative cost for the State of Illinois' employee pension system is 14.36 percent.
“We want to stress that this data comes directly from the State of Illinois, not from any group pushing for or against consolidation,” Smoot said.
The PBPA suggests that, rather than consolidating the local systems, the Illinois General Assembly should allow the smaller systems to invest their funds at a much higher rate of return like the IMRF is allowed to do. Without the investment restrictions, which are placed only on small police and fire pension funds, and with no consolidation, the local pension funds could generate their own higher returns, meaning no extra cost to the taxpayers to keep the funds healthy.
Sean Smoot, director and chief counsel of the Police Benevolent and Protective Association of Illinois, said his group is “philosophically opposed to consolidation,” a position he said he expressed to Pritzker when he sought an endorsement during last year’s race for governor.
Smoot objected to his union and the Illinois Public Pension Fund Association, of which he is deputy counsel, being excluded from the governor’s task force.
A major concern for opponents now is that lawmakers will heed Pritzker’s call for quick action this fall. “That would be a complete recipe for disaster,” said Smoot, who had not seen the specifics of the governor’s plan.
FOR IMMEDIATE RELEASE
Thursday, Oct. 10, 2019
CONTACT
Gov.Press@illinois.gov
Task Force Recommends Consolidating Downstate and Suburban Police and
Fire Pensions
Consolidating Assets of Suburban & Downstate Police & Fire Pension
Fund Assets Worth As Much As $2.5 Billion over 5 Years
The Pension Consolidation Feasibility Task Force issued a report to
Governor JB Pritzker today recommending that the state take action in
the veto session to consolidate the nearly 650 suburban and downstate
police and fire pension plan assets into two new statewide systems,
which could generate as much as $1 million a day in additional returns
for the funds and help stabilize pensions and protect the retirement
security of our brave first responders.
The consolidated funds would total more than $14 billion in assets,
generating an additional $820 million to $2.5 billion in investment
returns alone over the next 5 years and an additional $3.6 to $12.7
billion in investment returns alone over the next 20 years, based on
the performance of the statewide municipal employees’ fund.
The two consolidated funds – one for police and one for fire – would
pool assets to lower administrative costs and gain access to better
investment opportunities, improving performance and easing the growing
pressures on local property taxes to pick up the tab when funds
underperform.
“Under the current arrangement, Illinois’ suburban and downstate
police and firefighter pension funds are underperforming by nearly one
million dollars per day. That’s not just a missed opportunity – that’s
a hole these funds are digging deeper every year – and then
municipalities have to ask taxpayers to fill the hole,” said Governor
JB Pritzker. “We’ll be proposing legislation this fall to consolidate
the assets of the 649 suburban and downstate pension funds into two
statewide funds. This consolidation will improve the financial health
of the plans and help secure the future for the retired workers who
rely on them – and it will alleviate some of the property tax burden
plaguing homeowners and renters across our state.”
Because most of the existing 650 funds are so small – nearly half have
less than $10 million in assets – returns on their investments have
been significantly lower than other pension systems. Currently, the
array of smaller funds each pay higher administrative fees and see
significantly lower investment returns than larger pension plans in
Illinois, averaging 2% less annually during the past 10 years than the
statewide municipal employees’ fund.
With regard to the two new funds, the task force also recommends that
the state make some changes to Tier 2 beneficiaries’ plans to address
future concerns about the safe harbor standard of the Social Security
Administration and Internal Revenue Code, as well as avoiding
substantial and sudden future costs to municipalities resulting from
non-compliance.
In the future, the task force could consider consolidating the benefit
administration of the suburban and downstate police and fire pensions,
as well as the advantages of further consolidation of other state and
local benefit plans, including Chicago’s funds.
Governor Pritzker established the task force less than a month into
office, on Feb. 11, 2019. Former Chicago Board Options Exchange
Chairman and CEO William J. Brodsky, Associated Fire Fighters of
Illinois President Pat Devaney and former Illinois Senate Minority
Leader Christine Radogno co-chaired the 10-member committee.
Dear Retirees,
Over the past more than thirty years we have fought to protect your pension benefits, the solvency of your Pension Funds, and for the healthcare coverage you were promised by the City and your retirement Funds. As you know, we are in the Appellate Court for most of the issues, despite the court’s recent holdings that we cannot obtain any fee in the case; not from the City, the Funds, nor from even the subsidy recoveries we have obtained for you.
In the view that nothing will change without a change in the courts, I am seriously considering seeking the Democratic nomination for the open seat on the Illinois Supreme Court. At this point, the most challenging aspect is getting on the ballot. We will need more than 5,050 signatures to do that. Many of you are experienced in these efforts, have encouraged me to do this, and offered to help.
I am not asking for money; the critical need is to get petitions signed, and you all can do that. If you can get 20 or more signatures, great. Most of you should be able to sign and get your family members as well. Neighbors, anyone else.
I would appreciate your responding with your willingness to do that. I have attached copies of the petitions.
We are short on time. We need as many back as possible by the end of October.
The signatures must be from Cook County voters.
Your signature must be notarized, and you need to send us the ORIGINAL signed petitions back by mail or in-hand delivery. Do not scan or fax them.
If we can get the signatures, I’ll do it. If we cannot get the signatures, we will not proceed.
Clint Krislov
Krislov & Associates, Ltd.
Civic Opera Building
20 North Wacker Drive, Suite 1300
Chicago, IL 60606
Telephone: 312-606-0500
Facsimile: 312-739-1098
Email: clint@krislovlaw.com
Website: www.krislovlaw.com
FYI
From: RICHARD KING
The September FOP general meeting is 17 Sept 19 at 1200 hours. This is the month By-Laws are voted on. AGAIN there is another anti-retiree proposal. The proposal in question would limit members from serving more than four (4) terms on the FOP board. This By-Law would be legal on its own but they want to make retroactive to the formation of Lodge 7. The effect would be to remove about 6 trustees all of whom are retirees.
If you are read the second city blog you see many comments that they would give up the COLA to get rid of the residency requirement. It’s the retirees that add suitability to this board. This was proposed by a officer who will be running for president of the lodge. He has run many times before and has never won an election. Its not his first attempt to remove retirees from the board.
This By-Law was passed by the By-Law Committee but voted down by the full FOP board 16-9. Two retirees actually voted to accept the By-Law (Donahue and Dougherty). Remember those names come election time! All retirees are not equal. We need more worker bees and less good time Charlie’s!
This By-Law may still may come to a vote at the General Meeting. So anyone who could make the meeting would be appreciated. Hamburgers and hot dogs will be served. Parking is tight so car pool and let the guy/gal who is most ambulatory drive and drop the others at the door.
Good news with Aetna Insurance the rates will drop $10 next year and we will gain Silver Sneakers, Optical, and $2000 for hearing aides every two years. More info to follow.
Have a great day and stay safe!
Paul Vitaioli
Member FOP Retirement Committee
019 Retired
What do you think...
chicagocitywire.com/stories/512789294-ald-o-shea-introduces-pension-funding-ordinances?fbclid=IwA...
Ald. O'Shea introduces pension funding ordinances
Chicago's 19th Ward Ald. Matthew O’Shea has introduced a series of ordinances before the City Council that he is convinced could mean millions for the state’s deeply underwater pension systems.Attorney-Client Privilege
Participants,
Next Tuesday, July 30, 2019 at 10:00 a.m., we are back before Judge Cohen, Daley Center, Room 2308.
We will ask him to enter a judgement order on Count 1 (which he views as just the subsidies), so that the rest of the case can be up before the appellate court.
We will also ask him to protect our fee claim from the subsidies, at least to protect our ability to prevent that portion of the money from going out, until we can have the issue decided by the appellate court.
I’m not optimistic that he will accommodate us on either issue, but I’d like to get the rest of the Underwood case out of his court.
We would appreciate your attendance there, but our main fight at the moment, and for as long as we can keep it going, is to have the appellate court reverse his decisions.
We don’t think that the continued delays and hurdles posed in his court do much else than just wear us down.
In the meantime, we need contributions to the warchest to keep this going, even for the appeal.
Clint Krislov
Krislov & Associates, Ltd.
Civic Opera Building
20 North Wacker Drive, Suite 1300
Chicago, IL 60606
Telephone: 312-606-0500
Facsimile: 312-739-1098
Email: clint@krislovlaw.com
Website: www.krislovlaw.com
chicagocitywire.com/stories/512774014-wirepoints-denied-pension-bailout-lightfoot-makes-generous-...
Wirepoints: Denied pension bailout, Lightfoot makes generous offer to Chicago Teachers Union
On the heels of asking the state for a taxpayer-funded bailout, Chicago Mayor Lori Lightfoot is offering the Chicago Teachers Union (CTU) a five-year contract and a 14-percent pay raise, according to a Wirepoints report.
