Pension Reform Loses First Round In Illinois Court

Crain's Chicago Business reports:

A state judge today temporarily blocked implementation of the big pension reform plan that passed the General Assembly last winter. But the action likely is only a preliminary skirmish in a wider conflict that already was headed to the Illinois Supreme Court.

Sangamon County Circuit Court Judge John Belz issued a temporary restraining order blocking the new law, which affected most state employers and elementary and secondary school teachers outside of Chicago. The order will be in force at least until the judge holds a hearing on the merits of the dispute.

Spokesmen for both the state and a union coalition that argues the new law is unconstitutional confirmed the ruling but have yet to release statements.

No word yet on whether this will cause another downgrade of Illinois debt.