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From: Clint
Sent: Wednesday, August 31, 2016
Subject: Retiree Update


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.



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

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