CHICAGO — A Cook County judge has ruled that a 2014 law aimed at reducing multibillion-dollar shortfalls in two of Chicago's pension funds is unconstitutional.
Judge Rita Novak issued her written ruling on Friday.
The overhaul approved by lawmakers sought to eliminate a $9.4 billion unfunded pension liability by cutting benefits and increasing contributions. It would affect about 61,000 city employees and retirees.
A group of workers, retirees and their labor unions sued, saying the law violated a clause of the Illinois constitution that says pension benefits cannot be reduced.
Mayor Rahm Emanuel argued that without the changes the funds will be insolvent in a matter of years.
Chicago has the worst-funded pension systems of any major U.S. city.
The Emanuel administration says the city will appeal Judge Novak's ruling.