Retiree Healthcare Alert

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Retiree Healthcare Alert-a short note from Class Counsel Clint Krislov
to bring you up to date on where we are, how we got here, and what’s next!
A short history of 23 years of relatively continuous litigation. In 1987, in retaliation for being forced in Ryan v. Chicago,
to repay the pension funds for using the pension tax levies for itself, the City retaliated by suing the pension funds for a declaration
that it could cut off retiree healthcare, that it had been paid for by an appropriation that did not include annuitants. We intervened
for participants, asking the court to force the City and Funds to continue the fixed-rate 55/21 healthcare plan for life, for the
participants. After the trial, but prior to a decision by Chancery judge Albert Green, the City and Funds trustees entered into an
agreement for a ten-year settlement that set an allocation between the City, the Funds, and participants through 1997, rejecting our
participants’ unanimous Class1 objections. For your Retired Chicago Police Association, and then- president , we filed suit
to challenge it in federal court, as well, but both the State and federal courts rejected us, all the way through the U.S.Supreme
Court.
When 1997 rolled around with no permanent resolution in sight, We moved to reinstate the case for the participants
classes. Over the City’s opposition, and with no help from the trustees, Judge Green rejected our reinstatement, but the appellate
court ruled that we were, indeed, entitled to reinstate the claims for permanent healthcare plan, both because it was promised, and
as a benefit protected by the Illinois Constitution’s Article 13, Section 7, protection of benefits of participation in pension funds
against being diminished or impaired. That eventually produced a couple of extensions, and the 2003 settlement that is currently in
place through June 30, 2013. Between now and then, we will continue to each year set premiums, reconcile, and make refunds as
appropriate.
What happens in 2013? Sometime before June 30, 2013,the City’s Retiree Healthcare Benefits Committee will make a
recommendation, and the City will declare what it is going to do for most retirees. For people who were participants in the
retirement funds (i.e., began working for the City) before August 23, 1989, especially those who retired before then, we will move
to reinstate the claims for lifetime healthcare under the 55/21 plan for the rest of your lives.
Victory is by no means assured. We need your help and participation.
From each of you, we need your name address, phone, email, full contact information, and description of your situation.
Are you the retiree?, or a widow? Retiree’s retirement Date? Do you have other coverage? Or not? Do you qualify for Medicare?
Or Not? What are you paying now? What percentage is that of your income? Tell us your situation and why you need the
fixed rate, subsidized healthcare plan for life. Since there are many of you, we need to get it in writing, by email or mail or fax.
Please let me hear from you.
Sincerely, Clint Krislov, Class Counsel
Email:clint@krislovlaw.com
Krislov & Associates, Ltd.
20 North Wacker Drive, Suite 1350, Chicago, IL 60606
Telephone:312-606-0500 Fax: 312-606-0207
1Two intervenor annuitant classes were certified: the “Korshak Class” encompassing Funds’ annuitants who retired prior to December
31, 1987, and the “Window” Class for those annuitants who retired after December 31, 1987, but before August 23, 1989 (the
enactment date of P.A. 86-273 which set healthcare benefits for most subsequent retirees). As stated, both Classes are represented
by Class Counsel, Krislov & Associates, Ltd.