The following statement was issued by Krislov & Associates, Ltd:

On June 15, 2000, the Appellate Court of Illinois i) reversed the trial court's dismissal of the 13-year litigation over City retirees’ claims to a lifetime fixed rate healthcare plan for participants in December 1987and ii) ordered the trial court to permit the participants to re-argue the entitlement claims originally asserted by them and their retirement funds’ trustees.

The case began in October 1987, when the City asserted that it was not legally obligated to continue the fixed rate subsidized annuitant healthcare plan. The participants asserted they were entitled to unreduced benefits during their lifetimes. During active litigation over the following year, Circuit Court Judge Albert Green conducted a nonjury trial over a period of weeks. Prior to Judge Green rendering his decision, the City and funds’ trustees reached an interim settlement intended to allocate healthcare costs over the following 10 years, hoping to achieve a "permanent resolution" before the end of 1997. Although the participants objected to the settlement, the Court assured them that they were guaranteed the right to assert their claims after 1997, if no permanent resolution was achieved by then.

When no permanent resolution was reached by the end of 1997, retirees' class counsel, Clint Krislov, sought to reinstate the claims. Judge Green then refused to reinstate the claims and instead dismissed the case, based upon his view that a 5-year extension statute enacted in late 1997 was the most permanence that could reasonably be expected for retiree healthcare coverage.

Krislov appealed the dismissal. After full briefs and argument last month, the Illinois Appellate Court unanimously reversed Judge Green's refusal to reinstate the retiree healthcare claims, holding that a 5-year extension "simply does not create the continuing or lasting relationship necessary to make it [a permanent resolution]" under the previous settlement agreement, and ordered the case remanded to the Circuit court for further proceedings.

Krislov was quoted:

"We have been restored to life. Although there is no guarantee of victory, these loyal City employees will finally have their day in court to assert their claims for their promised entitlement to a lifetime program under the fixed-rate subsidized plan in effect as of October 1987. There is a lot of work to be done. We will now turn to that effort."

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