Judge Enjoins City From May 1 Increase for Retiree Healthcare Premiums

Apr 30, 2001, 01:00 ET from Krislov & Associates, Ltd.

    CHICAGO, April 30 /PRNewswire/ -- The following statement was issued by
 Krislov & Associates, Ltd:
 
     In litigation spanning nearly fourteen years so far, Circuit Court Judge
 Lester B, Foreman entered an order enjoining the City of Chicago from going
 forward with May 1 increases in retirees' healthcare premiums, amounting in
 some cases to 100% increases.
     Background.  The litigation began in October 1987 when the City sued the
 trustees of the Police, Fire, Municipal Employees and Laborers Funds to free
 itself from the obligation to provide retiree healthcare coverage under a
 fixed rate plan then in effect. Participants intervened and were certified as
 a class, asserting that they had an enforceable right to the fixed rate plan
 for life. In 1988, the City and Pension Funds agreed among themselves to
 an interim 10 year settlement period, to enable the parties to negotiate a
 permanent resolution. When that 10 years passed without a final permanent
 resolution being reached, the participants sought to reinstate their claims.
 Although originally rebuffed by the Circuit Court, they appealed and the
 Appellate Court, last June, ordered their claims reinstated.
     Current Issues.  Although the City and participants' class counsel have
 engaged in discussions, no settlement has been reached for the participants'
 claims [for participants via retirees as of 12/31/87, or those who retired
 during the period 1/1/88 to 8/23/89]. This spring the City announced its
 intention to raise rates, by another 100% in many cases, effective May 1,
 2001.
     The Court granted class counsel Krislov's emergency motion to enjoin the
 announced changes until the Court is able to address the merits of the
 participants' claims.
     The next status is set for May 7, 2001 at 2 p.m.
     Class Counsel Krislov was quoted:
     "We are pleased that the Court recognized the importance of these
 retirees' situation. Judge Foreman commented that these people have given
 their lives to the City and it owes them something in return."
     Krislov announced his intention to hold the City to its promises to its
 employees for their protection under contract as well as the Illinois
 Constitution.
 
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                http://tbutton.prnewswire.com/prn/11690X01715364
 
 

SOURCE Krislov & Associates, Ltd.
    CHICAGO, April 30 /PRNewswire/ -- The following statement was issued by
 Krislov & Associates, Ltd:
 
     In litigation spanning nearly fourteen years so far, Circuit Court Judge
 Lester B, Foreman entered an order enjoining the City of Chicago from going
 forward with May 1 increases in retirees' healthcare premiums, amounting in
 some cases to 100% increases.
     Background.  The litigation began in October 1987 when the City sued the
 trustees of the Police, Fire, Municipal Employees and Laborers Funds to free
 itself from the obligation to provide retiree healthcare coverage under a
 fixed rate plan then in effect. Participants intervened and were certified as
 a class, asserting that they had an enforceable right to the fixed rate plan
 for life. In 1988, the City and Pension Funds agreed among themselves to
 an interim 10 year settlement period, to enable the parties to negotiate a
 permanent resolution. When that 10 years passed without a final permanent
 resolution being reached, the participants sought to reinstate their claims.
 Although originally rebuffed by the Circuit Court, they appealed and the
 Appellate Court, last June, ordered their claims reinstated.
     Current Issues.  Although the City and participants' class counsel have
 engaged in discussions, no settlement has been reached for the participants'
 claims [for participants via retirees as of 12/31/87, or those who retired
 during the period 1/1/88 to 8/23/89]. This spring the City announced its
 intention to raise rates, by another 100% in many cases, effective May 1,
 2001.
     The Court granted class counsel Krislov's emergency motion to enjoin the
 announced changes until the Court is able to address the merits of the
 participants' claims.
     The next status is set for May 7, 2001 at 2 p.m.
     Class Counsel Krislov was quoted:
     "We are pleased that the Court recognized the importance of these
 retirees' situation. Judge Foreman commented that these people have given
 their lives to the City and it owes them something in return."
     Krislov announced his intention to hold the City to its promises to its
 employees for their protection under contract as well as the Illinois
 Constitution.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X01715364
 
 SOURCE  Krislov & Associates, Ltd.