Oral arguments have begun before the Illinois Supreme Court on whether a massive state-employee pension bailout invalidated last fall by a lower court will be revived.
The issue is whether the law, designed to deal with a $111 billion deficit in four retirement accounts by cutting benefits to current state employees, violates the state constitutional protection against reducing that assistance.
Lawyers for the General Assembly and the governor's office are defending the bailout plan adopted in 2013. The state argues the government has "police powers" to change contracts in extraordinary circumstances.
A county judge ruled last fall that the initiative violates the Illinois Constitution because it cuts promised retirement benefits to current employees.
It's uncertain when the court will rule, but it is hearing the case on an accelerated timetable.
