llinois Supreme Court Ruling on Pension Benefits Could Aler Landscape of Detroit's Grand Bargain
"The Supremacy Clause. According to Cornell University Law School, the Clause confirms in, "Article VI, Paragraph 2 of the Constitution... that the federal constitution, and federal law generally, take precedence over state laws, and even state constitutions." Scary language when City of Detroit retirees in less than a week are facing a life altering decision.
The open question is if these former and current workers vested in Detroit's Pension Plans vote yes to a 4.5% cut to monthly annuity income, or face upwards of a 27% reduction or more by voting no.
Furthermore, U.S. Sixth Circuit Court Bankruptcy Judge Steven Rhodes could pull a "trump card" of sorts if retirees were to deny what is known as the "Grand Bargain" using a Austerity focus safety net -- Supremacy. Or will he?
The decision made on Thursday, July 3, 2014 over the course of a busy holiday weekend in S.E. Michigan was heard like an ant crawling across a floor. Pretty much, not at all. Yet, the Illinois Supreme Court ruling was ground shaking.
As another state facing what the austerity hyper-focus call a pension short-fall, a bi-partisan Illnois State Legislator voted to diminish a core benefit retirees via Unionized contracts approved in good faith.
Public Act 97-695 of 2012 allowed the Illinois to charge retired workers for health care insurance premiums, which many did not have to pay depending on how long they worked for the state.Legal challenges to the Public Act took nearly two years to land within Illinois' Supreme Court Docket.
After a thorough review in a 6 to 1 strong majority decision, the state court decided to affirm language in Article 14, Section 9 of Illinois Constitution -- setting a possible future U.S. Supreme Court Case in motion, whether or not City of Detroit Retirees vote yes or no to its' Grand Bargain plan.
READ MORE: http://www.reachoutjobsearch.com/2014/07/oped-llinois-supreme-court-ruling-on.html#ixzz36h84j12d
