October 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.On Thursday, July 18, 2019, Michalene McElligott <michalene@krislovlaw.com> wrote:
Retiree Update-Attorney Client Communications-Answers to a number of questions from many of you
A whole raft of questions from many of you.
To speed up the answers, I’ve grouped most of the questions many of you have been asking individually.
Is it time to just drop the case, it’s over?
No. most all of the issues are before the appellate court on our appeal.
We just are at the end of our resources, and need to find a way for the case to continue, possibly without us.
What do retirees expect to receive at this point?
The Funds will be bringing their subsidies current, and resuming them going forward. Here’s who gets them at the moment and how this will be done.
All retirees whose Hired-By date precedes April 4, 2003 (the original signing date of the 2003 Settlement. The applicable hire date is an issue on appeal; we think it will eventually include people hired much later, possibly as late as June 30, 2013).
For 2017-2019, people who are in their Fund-administered plan will receive them automatically, without further action necessary.
People who are in any other plans (any Medicare, Obamacare, or other medical insurance plan) will receive a form from your Fund, to fill out to declare your coverage.
If you fill out the form, you’ll get the bring-current subsidy, but it will be reported to the IRS on a form 1099; if you submit proof as well, it will be treated as a nontaxable reimbursement and not reported as income.
For 2020 and going forward, at the moment, you will continue to get the subsidy only as long as you are on a plan administered by your Retirement Fund.
How much?
For Police and Fire retirees, the 1983 statutory amount is $55 each month for non-Medicare, $21 for Medicare qualified people. For the 2017-2018 period, just multiply your monthly amount by 24=$1,320 or $504.
For Municipal or Laborers, the 1985 statutory amount is a flat $25 per month, regardless of Medicare status, but only for periods that you are 65 or over, and with 15 years’ service. Multiplied by 24=$600.
We have asked Judge Cohen to order them to add interest at the 5% rate for payments that are vexatiously or unreasonably delayed. Cannot predict whether he’ll do this or not.
What issues are or will be decided in the appellate court?
Essentially all of them:
The funds’ obligations to provide coverage, and the applicable hired-by date for the protected group is already before the court, waiting on the city and funds’ second extension to august 1 to file their briefs.
The rest of the issues (class certification, the seventh amended complaint, our assertion of the claim as participants to enforce the funds’ contracting with the city as insurer, attorneys fees, etc.) will all be added once we’re done in the circuit court; hopefully next week.
If we’re not successful in the appellate court, can we appeal to the Illinois supreme court?
Yes. Any party in the appellate court will be able to petition the Illinois Supreme Court to review the case. The choice is entirely theirs.
How long can Krislov keep pursuing this?
Cannot say at this point. We have enough to get us into August. Beyond that, cannot say.
Other questions:
If I haven’t yet received a check for the 2013 re-reconciliation of Blue Cross secret settlement, what do I do?
We think these only went to people who were non-Medicare participants in 2013, but check with the city benefits office to be sure. Benefits Service Center:
www.cityofchicagobenefits.org
1-877-299-5111
8 am - 5 pm Monday - Friday CST
Chicago Benefits Office – (312) 747-1600
And, yes we still accept contributions, and we’ll certainly need them to continue.
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 Wednesday, July 17, 2019, Michalene McElligott <michalene@krislovlaw.com> wrote:
Dear Retirees;
Well, here it is.
We are very sorry to report that Judge Cohen today denied our motions for leave to file our Seventh Amended Complaint, denied our motion to reconsider and certify the case as a class action, and denied our request for fees, held that we cannot obtain fees either against the City and Funds, nor from the subsidies being paid next month.
The best that can be said is that we presume this will bring matters to and end before this court and judge.
We think that his rulings should be reversed by the Appellate Court, both as to your benefits and our fees, but who knows?
We are on appeal with respect to the Funds' obligation to provide a retiree healthcare plan for their annuitants, and who is included; and look forward to receiving the City and Funds' briefs sometime in the future.
We will want to protect our assertion to fees from the subsidies, and cannot predict how this will play out ultimately.
We may not be able to continue much further.
For those who have contributed to date, we are very appreciative. Far beyond these mere words.
Contributions will be needed to pursue the appeal.
Most of you will be receiving your statutory subsidies for 2017 through 2018 next month, and we would appreciate your contributing from those.
Please email us any questions you have.
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
Hey All, might be a good idea to see where our pension funds go.
Please sign the petition,
www.gopetition.com/petitions/forensic-audit-of-the-chicago-police-pension-fund.html#.XR5BdtJ2ZKI....
FORENSIC AUDIT OF THE CHICAGO POLICE PENSION FUND
We, the Retirees of the Chicago Police Department, Widows, Widowers, and active Police Officers are…On Tuesday, July 9, 2019, Michalene McElligott <michalene@krislovlaw.com> wrote:
Participants,
To clear up some confusion, we may have forced these payments to be made, but the City and Funds seem determined to comply without acknowledging how any of this occurred.
The Checks you have just received are not the subsidy checks.
The small checks (generally $19 or $38) you are receiving are your share of the City’s pocketed money from the secret settlement they entered into with Blue Cross in 2013, and fought to keep secret from us. We fought the City, successfully discovered the City’s concealed $2.1 million it received, and have obtained re-reconciliation of the 2013-1st half, producing small refunds with interest. This part may not be a lot of money, but it should be yours.
The Subsidy backpayments for 2017 and 2018 should be coming in mid-August, early September from the Funds, probably with your annuity deposit for the month.
Subsidy payments for those in the Blue Cross, Aetna and other Fund-processed healthcare programs should be brought current and continue. These will be larger amounts, generally $504, $600 or $1320 for the two year period, plus an additional $252, $300 or $660 for 2019, depending on your fund, age and medicare status.
We have also filed a motion to add interest for the Funds’ delay in paying the past subsidy moneys.
If you are participating in a healthcare plan processed by your Fund, your subsidy should continue in 2020 for life.
We’ll keep you posted.
The next major hearing before Judge Cohen will be July 15 at 1:00 p.m., Daley Center, Room 2308.
It will focus on our Amended Complaint, seeking to enforce the statutory obligation on the Funds to provide coverage, and their fulfilment by contracting with the City as insurer.
Attorneys Fees.
It will also focus on whether we can obtain fees from any source. We have asked the court to award us a portion of the backpay subsidies. The Funds (who fought against having to pay you anything), are now asserting that their fee opposition is to protect your interests.
The City and Funds are determined to keep us from being paid from any source, not them, not the subsidies…..Nothing.
Accordingly, depending on how that hearing goes, we may not be able to continue beyond July 15.
To those of you who have contributed and numerous times, words cannot express our appreciation, and our regret that we may not be able to see this further.
We still need contributions, but cannot guarantee how long we’ll be able to continue.
So if any of you wish to contribute, and voice support for our fee claim, we’d appreciate it.
This is an important hearing.
If past hearings are any indication, Judge Cohen will probably uphold our complaint, but only as far as the subsidy, then have the subsidies proceed, with or without a fee escrow
and hold the rest to see what the appellate court eventually decides, on our arguments that the Funds have a statutory obligation to provide coverage, not just the subsidy.
In the Appellate Court, the City and Funds are now on their second extension on their briefs, now due August 1, over our objections. They obviously don’t have to worry about their healthcare.
We are back before him tomorrow on the form for notices to accompany the subsidies; but we don’t think you all need to attend tomorrow.
Your attendance on the 15th will be greatly appreciated.
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
www.chicagobusiness.com/greg-hinz-politics/mayor-lightfoots-pension-handoff-proposal?fbclid=IwAR2...
Mayor Lightfoot's pension handoff proposal
A state takeover would spare city voters a $1 billion property tax hike, possibly bolstering the chances for Pritzker's graduated income tax hike in a referendum next year. Greg Hinz On Politics.www.pionline.com/courts/judge-rules-puerto-rican-public-pension-assets-safe-creditors?
Judge rules Puerto Rican public pension assets safe from creditors
The judge overseeing Puerto Rico's complex bankruptcy case ruled against bondholders seeking pension assets and a share of future revenue.FYI
On Friday, May 31, 2019, Michalene McElligott <michalene@krislovlaw.com> wrote:
Participants:
Regarding the “bring current” payment of the subsidies for 2017-2018, 2019, and going forward:
· We are cautiously optimistic that the court will on June 7 approve form notices to all those hired by April 4, 2003. While we have opposed sending the notices under the Funds’ letterheads, rather than the court’s, and we do not agree with limiting the subsidies to just the pre-4/4/2003 hires, most of you should be getting a notice from your Fund in July.
· Those who are on the Blue Cross or Aetna plans need not do anything.
· Those of you who are on other plans during the period after 1/1/2017 will need to respond.
· Police and Fire annuitants should receive $55 for each month they were/are not Medicare qualified, $21 for each month they were/are Medicare qualified.
· Municipal and Laborers annuitants who are over 65 and with 15 years’ service will receive $25 for each month, regardless of Medicare status.
· If you just fill in the form, you should get a lump sum to bring you current in the next annuity payment, possibly as early as August.
· If you also provide some documentation of your coverage during the period, the Funds will treat it as a nontaxable reimbursement; otherwise you’ll still get the payment, but they will report it to the IRS as income to you.
The next major court date for you to attend will not be until July 8, 2019 at 1:00 p.m., after he addresses the latest complaint, class certification again, and possibly escrowing a portion of the subsidies. We’ll let you know, and we’ll try to hold out until then.
Regarding our healthcare appeal-asserting that the statute obligates the Funds to provide coverage, and that they did so by enforceably contracting with the City as the insurer:
· We filed our brief more than a month ago.
· Predictably the City and Funds recently filed motions to extend their briefing time from last week to June 27.
· Usually we do not oppose reasonable extensions. However, after reading their motions (asserting they needed more time to complete working on things that aren’t due until after our case deadlines), we opposed their extension, pointing out that it makes no sense and is unfair to annuitants who are having to suffer, while the city and Funds just want to move things around to fit their priorities. Not surprising, the court noted the objections, but granted the extensions. Hopefully our objection will make it less likely that they will request a second extension.
Regarding our fees. The Illinois Supreme Court denied our petition in the City Pension Reform Case, leaving in place the appellate court’s ruling that we cannot get a fee; not from the City or Funds since it is not a case involving race, sex, national origin or gender discrimination, and we cannot get a fee from the Funds’ future annuity increases, in the court’s view that it would diminish benefits.
We are still fighting to convince Judge Cohen that our “bring current” back-payment is different and should have a portion escrowed to protect our claim to fees. Whether this will happen or not is still uncertain.
On the Korshak audit and reconciliation fees, we had briefs, and a hearing in March. The judge stopped it during closing arguments to see if the parties would let the judge mediate. That didn’t produce an agreement, and the City has requested to obtain post-hearing discovery, knowing that it will put things off for another three months. I don’t know how long we can hold out. Some of you have been really terrific in contributing; most simply have not.
Finally, we have reached out to the new administration, and hope they will do the right thing by all of you, and negotiate a fair resolution for this. We’ll see, and we’ll keep you posted.
We seriously need your help and contributions.
Maybe call your trustees and unions and ask them why they’re not helping us.
You all deserve better from them.
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
www.ilnews.org/news/state_politics/with-million-available-buyouts-set-to-begin-for-some-pension/a...
With $300 million available, buyouts set to begin for some pension funds
It was supposed to save taxpayers in the current fiscal year, but Illinois’ pension buyout plan is just now gearing up to dispense funds to those who opted for theFYI...
On Thursday, April 25, 2019, Michalene McElligott <michalene@krislovlaw.com> wrote:
Participants,
OK, the hearing last Thursday consumed almost three hours, from two p.m. for the whole afternoon. We had a pretty good turnout of annuitants, but more is always better. We battled on three fronts:
Our motion to disqualify the firemen intervenors’ attorney for conflict since he previously represented the Laborers Fund trustees insurance company in a federal complaint that the insurer would not be liable for our claims.
Class Certification-We have been fighting to get this done for nearly six years now, asserting that all 22,000 annuitants are entitled to notice of these proceedings; not just the 400 of you who are in our database. The City and Funds trustees assert that it’s unnecessary, that the matter can be decided without certifying it or notifying anyone until perhaps after he’s ruled on all of the claims. We have very strongly argued that that would be a fundamental violation of Due Process, which requires notice and opportunity to be heard.
The Sixth Amended Complaint. Our Sixth Amended complaint shows that the trustees themselves acknowledged years ago that they are obligated to provide coverage for all of you, and did so by contracting with the City; and that we are entitled to enforce that contract.
We’ll post the transcript when it is available, and you’ll be able to read through it. Things got certainly heated. But, I hope you will be happy with our arguments for you. Your critiques and suggestions are always welcome.
The rest of the currently pending issues have been put over to May 9, 2019 at 1:00 p.m., Room 2308, with Judge Cohen issuing a written decision on these sometime between now and the 9th. In the meantime, here is the status of other items:
The Appellate Opening Brief has been filed (copy attached). This is where we ask the Appellate Court to rule that the Funds have an obligation to provide coverage for all annuitants, at least those who were first hired by June 30, 2013, per the 2003 Settlement.
On our request for fees for our work on the Audit & Reconciliations, the City continues to oppose any fee whatsoever, and the court has continued the battle on this, now saying that he may need an evidentiary hearing at some time in the future; knowing that we simply do not have the resources to keep this going much longer.
On his order to the Funds to bring the subsidies current (on which he rejected our request to escrow a portion to protect our claim to attorneys’ fees, in his view that it would violate your constitutional pension rights), the City and Funds seem committed to delaying this for months; perhaps to the end of the year. For those of you in the Blue Cross and Aetna plans, you could be paid today without problem. For the rest of you, they seem determined to tie this up for as long as possible with forms for you all to fill out, and the Funds want to wait until they send out and receive back responses from everyone, before they pay out anything to any of you. We have offered to work with them to get this resolved, and all of you paid, as soon as possible; but we have heard anything from them on this for more than a month. You might call your Fund trustees and ask them what’s taking so long.
In the meantime, it looks as if the Illinois supreme court will not step in to protect our fees out of that recovery. If that is indeed the case, and we cannot get paid from any source, then we will soon have to close. This is not what we want. We’ve carried on this battle for all of you for years, and we’d hoped to see it through to a successful end.
We have reached out to see if the incoming Lightfoot administration is amenable to discussing a fair and appropriate resolution for all of you. You don’t deserve the Emanuel administration’s haughty abandonment of all of you. Over the more than thirty years of this litigation, I’ve gotten to know many of you personally, heard about the cancers, the chemos, the financial stress this has put you all through; and attended a funeral and visitations. We’re still determined to see this through to a successful resolution for you all.
Contributions are still needed. As always, we welcome any questions (preferably by e-mail; the individual phone calls consume a lot of time, but they often give us new information 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
On Wednesday, April 3, 2019, Michalene McElligott <michalene@krislovlaw.com> wrote:
ATTORNEY CLIENT COMMUNICATION
Participants,
Regarding the Underwood case:
First, I am considering asking the court to stay the scheduled April 15 arguments on the City and Funds’ motions to dismiss our Sixth Amended Complaint, to see if the new incoming administration might be amenable to discussing a real and fair resolution for you all (either qualifying you for Medicare or expanding the Korshak/Windows 55% payments for all of you). To be sure, I think our complaint (which seeks to enforce the Funds’ obligation to provide coverage, and their contracting the City to do it for all annuitants) should survive. But, none of this will be resolved before the Emanuel administration exits. And some of this will be decided in our pending appeal over the Funds’ obligation to provide coverage, still on a longer time frame.
Second, on the subsidies bring-current payments, the City and Funds are posing a delay because for people who are not in the Aetna or Blue Cross plan, the Funds and City believe that the $700-$1500 lump sum payments will probably be taxable income for those who just attest, rather than providing actual proof of payments, and for some of you, who qualify for Obamacare subsidies, that the amount in 2019 might push you over the income limits to obtain federal healthcare subsidies.
My rough view on this one is that most of you want the money already, and to resume the monthly subsidies ASAP, regardless.
Your candid and speedy feedback on these issues would be appreciated.
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
5 things to know about the LEOSA Reform Act
5 things to know about the LEOSA Reform Act
The bill aims to fix many of the issues with the Law Enforcement Officers Safety ActFYI
Participants,
Well today’s hearing went from 11:00 a.m. to around 2:00 p.m.
On our motion to disqualify the firemen intervenors’ lawyer for his previously representing the laborers’ fund’s insurer for a declaration that they had no liability for our case-Mr. Deady asked for and received a two-week response time.
Judge Cohen denied the city’s motion to strike our fee reply (see below) seeing it as something to consider as part of our fee hearing.
On our fees for the audit and reconciliation work on Korshak, our position is that the 2003 Settlement Agreement and 2009 reconciliation agreement intend that we get paid for this work, and we’ve done a great job:
making sure that the retirees have an accurate and transparent accounting of their premium charges,
that it has actually produced some major cash benefits for the retirees:
Over $65 million in reconciliation refunds for the periods 2003-2013
We’ve forced the city to audit the 2013-2 period,
Which uncovered the secret Blue Cross contract, in 2013-1st half, under which the City secretly pocketed $1,000,000;
And we forced that to be re-reconciled, adding $200,000 to retirees,
And in the re-reconciliation of 2013-1, we learned (from their inadvertently attaching some emails to a spreadsheet) that there were some uncashed reconciliation checks.
That uncovered more than 8,000 uncashed checks, some dating back as long as 13 years, which the City now is in the process of finding people to pay.
And we’ve done this over the City’s determined efforts to prevent transparency, and their threats against me for disclosing their concealment. The City’s position is that they’re not obligated to pay for this work at all, that most of the cash refunded goes to people other than the pre-8/23/1989 retirees, and much of the time should not be compensated.
Judge Cohen seems very critical of the city’s assertion that it doesn’t owe fees for this work, and started to get into the details, then started to press for everyone to let him mediate a resolution. We said that we are always amenable to mediate, but time is short, we need the money and the person from the city would have to be someone with actual authority. Judge Cohen agreed on the authority, but said he’s not responsible for keeping our office open. But would be available to mediate even on a Saturday in early April. We’ll see.
For the City, Rich Prendergast did not commit, but would get back to the court.
Regarding our complaint and class certification motions, the Judge said that he will be gone next week, and could not read everything by April 3, so put off the hearing from April 3rd to April 15, 2019 at 8:30 a.m. in the morning. All the alternative dates were worse. Although, having the hearing after the election might be of some benefit. There’s more, but that’s where we are at the moment.
On the subsidies, the City and funds are now saying that there is a problem in paying the subsidies for the people outside the Aetna and Blue Cross plans, that it may be taxable unless they have actual proof of payment, for anyone who gets more than $600, and that they are concerned that the money may put some people over the ACA income level for healthcare subsidies. I said that we will cooperate, but the City and your Funds’ trustees seem determined to figure out any way possible to delay or get you to waive getting your money. We’ll see on this one as well.
In the meantime, your contributions are still needed.
And appreciated.
Oh, and for those of you who are now concerned that we might actually get paid, and think we should give refunds, I’ve always said that we would consider it based on where we come out of this in the end.
In the meantime, we’ve reached the limit of our borrowing, and we need your help to continue.
Our Appellate brief should be filed by April 7-seeking coverage for all of you.
Our Sixth Amended Complaint seeks coverage for all of you.
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
