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updated: 6/9/2014 4:51 PM

Unions say they'll sue over Chicago pensions law

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Associated Press

A coalition of unions says it plans to file a lawsuit challenging the newly signed law aimed at overhauling two of Chicago's pension systems.

We Are one Chicago is a group of unions that has also challenged the state's pension overhaul. In a statement Monday, the group says the plan addressing laborer and municipal employee pensions is unfair and unconstitutional.

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The new law would affect about 57,000 laborers and municipal employees and retirees and seeks to eliminate the $9.4 billion shortfall by cutting benefits and increasing contributions.

The coalition claims the new law would slash the value of pensions and disproportionately affect minorities, women and low-income workers and retirees.

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