The Bylaws and Rules may be amended by a majority vote of the Board, provided that such amendments shall not be inconsistent with any provision of law, and provided that notice of the proposed amendment is provided to each Trustee at least fourteen (14) calendar days prior to the meeting at which the amendments are to be considered or, by unanimous vote, without previous notice. To the extent these Bylaws conflict with any provision of the Illinois Pension Code, the Illinois Pension code shall control.
Illinois Pension Code
Pensions (40 ILCS 5/)
On June 9, 2014, Senate Bill 1922 was signed into law and became Illinois Public Act 98-0641 (“Act”). Specifically, the Act called for reductions in future automatic annual increases in annuity, commonly referred to as “COLAs.” The Act also required increased pension contributions from active employees in exchange for actuarial-based funding from the City that would have put the LABF on a path toward reaching 90% funded status by 2055.
In late December 2014, two lawsuits were filed challenging the constitutionality of the Act on the grounds that it diminished pension benefits and, therefore, violated the pension protection clause of the Constitution of the State of Illinois.
On July 24, 2015, the Act was ruled unconstitutional by the Circuit Court of Cook County. The ruling was appealed and on March 24, 2016, the Illinois Supreme Court affirmed the lower court’s ruling.