January 6, 2015 - Skyline Newspaper

By Skyline Newspaper January 6, 2015 8 years 301 words

2nd Lawsuit Argues Chicago Pension Reform Law Is Unconstitutional

A second legal challenge to the 2014 law that would cut pension benefits for some Chicago public workers was filed Dec. 26 in Cook County Circuit Court, Meaghan Kilroy reported for Pensions …


A second legal challenge to the 2014 law that would cut pension benefits for some Chicago public workers was filed Dec. 26 in Cook County Circuit Court, Meaghan Kilroy reported for Pensions and Investments Dec. 30. The lawsuit, brought by the Municipal Employees Society of Chicago, argues that reducing pension benefits is unconstitutional. It states that “[The Illinois Constitution] explicitly protects the benefits of participation in a government retirement system from being diminished or impaired.” The law, signed by Gov. Pat Quinn June 9 of last year, affects participants in the Chicago Municipal Employees’ Annuity and Benefit Fund and Chicago Laborers’ Annuity and Benefit Fund, worth $5.3 billion and $1.4 billion respectively. It reduces cost-of living adjustments for retirees as well as increasing both employee and employer contributions to the plans. Proponents of the measure have called it a pension reform law, and Chicago Mayor Rahm Emanuel says that without these mandated steps, both funds may go completely broke. He has also maintained that the reforms are legal. City documents show that the municipal fund is approximately 38% funded, while the laborers’ fund is 58% funded. Together, they have about $9.4 billion in unfunded liabilities. In general, lawsuits against employers have gone up by 400% over the last two decades in the United States, though most of those concern private companies. Certain union members had filed a previous lawsuit Dec. 16. Clint Krislov, who is representing the plaintiffs of the additional lawsuit, say hearings are scheduled for Jan. 28 and 30 and Feb. 6 and 11. Multiple bills and court cases regarding pension reform in the state have come under the spotlight during the past year. Meanwhile, just before the new year, Gov. Quinn also signed a bill into law that prevents taxpayer-funded pension payments for public employees who have been convicted of felonies concerning their positions. The law is scheduled to go into effect June 1.

A second legal challenge to the 2014 law that would cut pension benefits for some Chicago public workers was filed Dec. 26 in Cook County Circuit Court, Meaghan Kilroy reported for Pensions and Investments Dec. 30.

The lawsuit, brought by the Municipal Employees Society of Chicago, argues that reducing pension benefits is unconstitutional. It states that “[The Illinois Constitution] explicitly protects the benefits of participation in a government retirement system from being diminished or impaired.”

The law, signed by Gov. Pat Quinn June 9 of last year, affects participants in the Chicago Municipal Employees’ Annuity and Benefit Fund and Chicago Laborers’ Annuity and Benefit Fund, worth $5.3 billion and $1.4 billion respectively. It reduces cost-of living adjustments for retirees as well as increasing both employee and employer contributions to the plans.

Proponents of the measure have called it a pension reform law, and Chicago Mayor Rahm Emanuel says that without these mandated steps, both funds may go completely broke. He has also maintained that the reforms are legal. City documents show that the municipal fund is approximately 38% funded, while the laborers’ fund is 58% funded. Together, they have about $9.4 billion in unfunded liabilities.

In general, lawsuits against employers have gone up by 400% over the last two decades in the United States, though most of those concern private companies.

Certain union members had filed a previous lawsuit Dec. 16. Clint Krislov, who is representing the plaintiffs of the additional lawsuit, say hearings are scheduled for Jan. 28 and 30 and Feb. 6 and 11.

Multiple bills and court cases regarding pension reform in the state have come under the spotlight during the past year.

Meanwhile, just before the new year, Gov. Quinn also signed a bill into law that prevents taxpayer-funded pension payments for public employees who have been convicted of felonies concerning their positions. The law is scheduled to go into effect June 1.

By Skyline Newspaper January 6, 2015 8 years 523 words

Spurred by New Policies and Opportunities, Illinois’ Energy Landscape May Change in 2015

Illinois may see “dramatic” changes in its energy outlook in 2015, Julie Wernau of the Chicago Tribune wrote Dec. 23, with policy changes opening and closing various doors regarding fracking, nuclear power production …


Illinois may see “dramatic” changes in its energy outlook in 2015, Julie Wernau of the Chicago Tribune wrote Dec. 23, with policy changes opening and closing various doors regarding fracking, nuclear power production and wind energy. “By year-end, the state could see an oil boom downstate, nuclear plants on the chopping block and forward momentum for a wind-power superhighway to carry wind-generated electricity from Iowa into Illinois,” Wernau reported. Oil and Gas Drilling There have been nearly two years of debates and legal battles over horizontal hydraulic fracturing — better known as fracking — in the state, but Illinois lawmakers have succeeded in codifying regulations for the industry in the hopes that tax revenues will mitigate budgetary woes statewide. The fracking process, which involves violently fracturing shale in order to extract oil and natural gas, is controversial among environmental activists. But each well could result in $725,508 in taxes over 10 years, assuming an oil price of $85 per barrel. Currently, oil prices are sitting at a much lower rate of $55 per barrel. It’s unclear exactly how many rigs will pop up in the next year, but it’s likely that Southern Illinois will see at least some new permits issued. Nuclear Power The fate of nuclear power in Illinois is unclear, and Wenau predicts that “All eyes will be on Chicago-based Exelon as it decides what to do about its financially troubled fleet of nuclear power plants.” The energy giant has struggled to compete at the prices set by wind- and natural gas-generated power. Exelon is putting pressure on policymakers to reward its ability to produce electricity without carbon emissions, especially as the Environmental Protection Agency has set the ambitious goal to reduce greenhouse gases 30% (measured from 2005 levels) by 2030. Closing even one Exelon plant would put Illinois behind its goals. The company has said that three — half — of its plants may be closed for financial reasons. That hasn’t stopped Exelon from planning for the future, however; starting early this year, the company will begin to roll out an app to help employees manage their careers. It was developed, a company spokesperson said, in response to employee uncertainty about advancement and promotion pathways. Wind Power Distribution 2015 will likely see progress on a 500-mile “wind-power superhighway” that would transmit wind-generated electricity from Iowa into Grundy County, IL. The $2 billion line, called the Rock Island Clean Line, was approved last year. It could lead to a drop in electricity prices across the state, as well as helping Illinois to meet its goal to derive 25% of its energy from renewable sources by 2025. Because Illinois has had a deregulated energy market since the late 1990s, consumers can already choose their electricity suppliers and use only sustainably created power if they so desire. Energy deregulation breaks up the monopolies held by utility companies by dividing energy production from energy distribution; Illinois residents can choose from a wide range of energy suppliers, though electricity is delivered through the public utility company regardless of where it comes from. According to data from Power 2 Switch, only 0.8% of Illinois homeowners currently choose a “completely green” electricity supplier. About 16.4% choose a “partially green” supplier, while 82.8% use traditional suppliers.

Illinois may see “dramatic” changes in its energy outlook in 2015, Julie Wernau of the Chicago Tribune wrote Dec. 23, with policy changes opening and closing various doors regarding fracking, nuclear power production and wind energy.

“By year-end, the state could see an oil boom downstate, nuclear plants on the chopping block and forward momentum for a wind-power superhighway to carry wind-generated electricity from Iowa into Illinois,” Wernau reported.

Oil and Gas Drilling
There have been nearly two years of debates and legal battles over horizontal hydraulic fracturing — better known as fracking — in the state, but Illinois lawmakers have succeeded in codifying regulations for the industry in the hopes that tax revenues will mitigate budgetary woes statewide.

The fracking process, which involves violently fracturing shale in order to extract oil and natural gas, is controversial among environmental activists. But each well could result in $725,508 in taxes over 10 years, assuming an oil price of $85 per barrel. Currently, oil prices are sitting at a much lower rate of $55 per barrel.

It’s unclear exactly how many rigs will pop up in the next year, but it’s likely that Southern Illinois will see at least some new permits issued.

Nuclear Power
The fate of nuclear power in Illinois is unclear, and Wenau predicts that “All eyes will be on Chicago-based Exelon as it decides what to do about its financially troubled fleet of nuclear power plants.”

The energy giant has struggled to compete at the prices set by wind- and natural gas-generated power.

Exelon is putting pressure on policymakers to reward its ability to produce electricity without carbon emissions, especially as the Environmental Protection Agency has set the ambitious goal to reduce greenhouse gases 30% (measured from 2005 levels) by 2030.

Closing even one Exelon plant would put Illinois behind its goals. The company has said that three — half — of its plants may be closed for financial reasons.

That hasn’t stopped Exelon from planning for the future, however; starting early this year, the company will begin to roll out an app to help employees manage their careers. It was developed, a company spokesperson said, in response to employee uncertainty about advancement and promotion pathways.

Wind Power Distribution
2015 will likely see progress on a 500-mile “wind-power superhighway” that would transmit wind-generated electricity from Iowa into Grundy County, IL. The $2 billion line, called the Rock Island Clean Line, was approved last year.

It could lead to a drop in electricity prices across the state, as well as helping Illinois to meet its goal to derive 25% of its energy from renewable sources by 2025.

Because Illinois has had a deregulated energy market since the late 1990s, consumers can already choose their electricity suppliers and use only sustainably created power if they so desire. Energy deregulation breaks up the monopolies held by utility companies by dividing energy production from energy distribution; Illinois residents can choose from a wide range of energy suppliers, though electricity is delivered through the public utility company regardless of where it comes from.

According to data from Power 2 Switch, only 0.8% of Illinois homeowners currently choose a “completely green” electricity supplier. About 16.4% choose a “partially green” supplier, while 82.8% use traditional suppliers.