In this Dec. 3, 2013 photo, Illinois Speaker of the House Michael Madigan, D-Chicago, speaks to lawmakers during a Pension Committee hearing at the Illinois State Capitol in Springfield Ill. The Illinois Supreme Court struck down a state law designed to narrow multibillion-dollar deficits in two of Chicago's chronically underfunded pension funds. The law was aimed at rescuing two chronically underfunded pension programs that cover about 61,000 current and retired municipal civil servant workers. It reduced pension benefits and required significantly higher city contributions. Affected workers sued, saying the law violated the Illinois Constitution's protection against reducing promised benefits. (AP Photo/Seth Perlman)
The Associated Press
SPRINGFIELD, Ill. (AP) - The Latest on the Illinois Supreme Court's decision that a Chicago public-pension fund bailout is unconstitutional (all times local):
1:20 p.m.
Chicago Mayor Rahm Emanuel says he disagrees with the Illinois Supreme Court's decision to reject a pension plan bailout but will work on a new solution.
The Supreme Court ruled Thursday that the rescue violated the state constitution's protection against "diminishing" pension benefits. It reduced cost-of-living increases and required larger employee contributions.
The city argued benefits in the funds affecting civil servants and laborers were preserved because it also required a steep increase in city contributions.
The Democratic mayor says he's committed to "ensuring employees and retirees have a secure retirement without placing the full burden on Chicago taxpayers."
Emanuel says the city will continue contributing what state law requires - $180 million in 2015. Without a fix the city says both pension accounts will be broke within 15 years.
In this May 8, 2012 photo, Chicago Mayor Rahm Emanuel, right, and Illinois Rep. Elaine Nekritz, D-Des Plaines, left, talk before Emanuel testifies during the House Committee Hearing on Personnel and Pensions at the Illinois State Capitol in Springfield, Ill. The Illinois Supreme Court on Thursday, March 24, 2016, struck down a state law designed to narrow multibillion-dollar deficits in two of Chicago's chronically underfunded pension funds. The law was aimed at rescuing two underfunded pension programs that cover about 61,000 current and retired municipal civil servant workers. It reduced pension benefits and required significantly higher city contributions. Affected workers sued, saying the law violated the Illinois Constitution's protection against reducing promised benefits. (AP Photo/Seth Perlman)
The Associated Press
In this Nov. 17, 2015 photo, Attorney John Shapiro, left, is seen on a television monitor speaking to Illinois Spreme Court justices at the Illinois Supreme Court in Springfield, Ill. The Illinois Supreme Court struck down a state law designed to narrow multibillion-dollar deficits in two of Chicago's chronically underfunded pension funds. The law was aimed at rescuing two chronically underfunded pension programs that cover about 61,000 current and retired municipal civil servant workers. It reduced pension benefits and required significantly higher city contributions. Affected workers sued, saying the law violated the Illinois Constitution's protection against reducing promised benefits. (AP Photo/Seth Perlman)
The Associated Press
In this May 8, 2012 photo, Chicago Mayor Rahm Emanuel testifies during the House Committee Hearing on Personnel and Pensions at the Illinois State Capitol in Springfield, Ill. The Illinois Supreme Court on Thursday, March 24, 2016, struck down a state law designed to narrow multibillion-dollar deficits in two of Chicago's chronically underfunded pension funds. The law was aimed at rescuing two chronically underfunded pension programs that cover about 61,000 current and retired municipal civil servant workers. It reduced pension benefits and required significantly higher city contributions. Affected workers sued, saying the law violated the Illinois Constitution�s protection against reducing promised benefits. (AP Photo/Seth Perlman)
The Associated Press