Judge hears final arguments in Illinois pension overhaul case

SPRINGFIELD, Ill. (WLS) -- In Springfield, lawyers for state employees and retirees argued in court that the Illinois Constitution bars lawmakers from cutting their pension benefits. Also on Thursday, Governor-elect Bruce Rauner made the rounds in the state capitol as the legislature convenes for its fall veto session.

The circuit judge announced he would make a ruling on Friday before hearing final arguments. Whichever side loses in circuit court is certain to file an appeal with the Illinois Supreme Court.

The plaintiffs, public employees' unions and retirees, left the courtroom sounding confident they'd made their case: that the Illinois Constitution has a pension protection clause.

"Our unions have long argued the state cannot change the constitution and diminish or impair retirement benefits," said Anders Lindall, We Are One Coalition.

"And we certainly believe and hope that the court will find the statute to have been unconstitutional," said Sean Smoot, Police Benevolent and Protective Association.

Lawyers for the Illinois Attorney General's office would not comment on their argument that the state's fiscal emergency permits the General Assembly to make changes.

If the court should rule for the plaintiffs, lawmakers - now facing an estimated $110 billion pension liability- would have to rewrite reform legislation and get it signed by Republican Governor-elect Bruce Rauner. During his campaign, Rauner opposed so-called defined benefit retirement programs.

"My preference is probably to wait until the Supreme Court rules so that we have some ground rules for what probably works and what won't work, I think that's the smarter way to do it," Rauner said.

At the capitol, Rauner- who called the state's fiscal situation "stunningly bad"- met with Republican legislative leaders and Democratic Senate President John Cullerton. Later, he and his wife Diane toured the executive mansion. The wealthy couple has promised to renovate the house and live in it year-round.

"We have to assess the situation in detail, but my plan would be to have the repairs that we undertake now be 100% privately funded," Rauner said.

Rauner asked lame-duck Gov. Pat Quinn to impose a hiring and appointment freeze until Jan. 12, when he will take over as Illinois governor.