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Illinois pension reform in question

The state's top court says Illinois cant cut contributions to government retirees health-insurance premiums.

By Andrew Harris | Updated on July 03, 2014

July 3 (Bloomberg) — Illinois can’t cut contributions to government retirees’ health-insurance premiums, the state’s top court said in a ruling with possible implications for Governor Pat Quinn’s bid to fix a $100 billion pension shortfall.

The Illinois Supreme Court, in a 6-1 decision today, ruled the health-insurance premium subsidies are pension benefits protected by the state’s constitution which can’t be diminished or impaired, as Illinois lawmakers tried to do with a 2012 law that let an administrator determine the level of contributions.

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