Holland v. City of Chicago

Procedural entryThis page is a short order in Holland v. City of Chicago. Read the opinion of the Court — 289 Ill. App. 3d 682
Appellate Court of Illinois·Decided June 27, 1997·No. 1-95-2491·Published

Opinion

FIFTH DIVISION

June 27, 1997

No. 1-95-2491

NORMAN HOLLAND, CARLYLE JAKOVEC,   ) Appeal from the

SALVATORE TRICOCI, THOMAS KELLY,   ) Circuit Court of

and JAMES McDONOUGH, individually  ) Cook County.

and on behalf of all others     )

similarly situated and derivatively)

on behalf of the Policemen's     )

Annuity and Benefit Fund and the   )

Firemen's Annuity and Benefit Fund ) No. 90 CH 9756

of Chicago,     )

    )

Plaintiffs-Appellants,     )

v.     ) The Honorable

    ) Dorothy Kirie Kinnaird,

THE CITY OF CHICAGO, a municipal   ) Judge, Presiding.

corporation; RICHARD M. DALEY,     )

Mayor of the City of Chicago;      )

MIRIAM SANTOS, Treasurer of the    )

City of Chicago and Trustee of the )

Policemen's Annuity and Benefit    )

Fund and Firemen's Annuity and     )

Benefit Fund of Chicago; WALTER    )

KNORR, Comptroller of the City of  )

Chicago and Trustee of the         )

Policemen's Annuity and Benefit    )

Fund and Firemen's Annuity and     )

Benefit Fund of Chicago; WALTER    )

KOZUBOWSKI, former City Clerk of   )

the City of Chicago and Former     )

Trustee of the Firemen's Annuity   )

and Benefit Fund of Chicago;       )

ERNEST WISH, City Clerk and        )

Trustee of the Firemen's Annuity   )

and Benefit Fund; RUSSELL EWERT,   )

THOMAS ALLISON, CHESTER JASKOLA,   )

Former Trustees and CHARLES R.     )

LOFTUS, RONALD R. NORRIS, GARY B.  )

HELMS, ROBERT F. RUESCHE and       )

RICHARD J. JONES, Trustees of the  )

Policemen's Annuity and Benefit    )

Fund, and JAMES T. NOLAN, FRED     )

GAWRYK, JOSEPH F. QUINN, WILLIAM   )

J. WILKINSON and JAMES T. JOYCE,   )

Trustees of the Firemen's Annuity  )

and Benefit Fund of Chicago, and   )

DONALD STENSLAND, Former Trustee,  )

all as direct and/or derivative    )

defendants; and THE RETIREMENT     )

BOARD OF THE POLICEMEN'S ANNUITY   )

AND BENEFIT FUND and THE           )

RETIREMENT BOARD OF THE FIREMEN'S  )

ANNUITY AND BENEFIT FUND OF        )

CHICAGO as direct defendants only, )

    )

Defendants-Appellees.         )

JUSTICE HOURIHANE delivered the opinion of the court:

Plaintiffs, current or former members of the Chicago police and fire departments, who are or will be entitled to receive retirement benefits, brought an action against the City of Chicago (City), various city officials, the trustees of the Policemen's and Firemen's Annuity and Benefit Funds (hereafter Policemen's and Firemen's Pension Funds or the Funds), and the Retirement Boards of the Funds (hereafter pension boards or boards), seeking declaratory and injunctive relief and damages.  The gravamen of plaintiffs' complaint is that the City failed to report to the pension boards the full amount of "salary" paid to plaintiffs, contrary to the provisions of Articles 5 and 6 of the Illinois Pension Code (40 ILCS 5/1-101 et seq. (West 1994 and Supp. 1995)), thereby decreasing plaintiffs' total vested pension benefits.  Plaintiffs also alleged that defendants' practice of excluding certain items of compensation from "salary" deprived plaintiffs of their due process rights in violation of federal civil rights law.  42 U.S.C. § 1983 (1988).  

The circuit court dismissed all of plaintiffs' claims with prejudice either on the pleadings, pursuant to section 2-615 of the Code of Civil Procedure (Code) (735 ILCS 5/2-615 (West 1994)), or pursuant to the provisions of section 2-619 of the Code (735 ILCS 5/2-619 (West 1994).  Plaintiffs appeal.  155 Ill. 2d R. 301.  The principal issue on review is whether the circuit court properly construed the Pension Code to exclude certain items of compensation from "salary" for purposes of calculating pension contributions and benefits.  For the reasons that follow, we affirm the judgment of the circuit court.

ANALYSIS

As a preliminary matter, the Funds argue that judicial review of certain counts of the complaint is barred because plaintiffs ran afoul of the Administrative Review Law.  735 ILCS 5/3-101 et seq. (West 1994).  We decline to entertain the Funds' argument as it finds no support in the record before this court.

As to the principal issue on appeal, plaintiff police officers contend that the following items of compensation, negotiated under one or more collective bargaining agreements, fall within the definition of "salary" as used in Article 5 of the Pension Code: duty availability allowance, uniform allowance, overtime pay, holiday pay, optional pay for personal days, pay for baby furlough days, final vacation pay, pay for work out of grade, and supplemental pay for sergeants, lieutenants and captains.  Plaintiffs also claim that a one-time lump sum payment of $1,250 made during 1989 pursuant to an arbitration award also constitutes "salary".

Plaintiff firefighters contend that the following items of compensation fall within the definition of "salary" under Article 6 of the Pension Code: shift reduction allowance, clothing allowance, overtime pay, holiday pay, final vacation pay, pay received for acting out of classification, pay received for attending recertification training seminars during off-duty hours, pay for unused administrative days, training instructor incentive pay, and a $1,250 one-time lump sum payment made during 1988.  All of these pay provisions arise under the firefighters' collective bargaining agreements.

The circuit court concluded that none of the disputed compensation items constitute "salary" for purposes of the Pension Code.  The court noted that there was no evidence that the legislature intended that the additional benefits firefighters and police officers receive under their labor contracts should be included in salary, and that "salary" means "the base salary in the budget line item as appropriated in the municipality's appropriation ordinance."  Plaintiffs argue that the language of the Pension Code, the Illinois Constitution, and caselaw construing the Pension Code require the opposite conclusion, and that pension rights cannot be decided based on how the City and the unions label a pay provision.  

We agree with defendants that the circuit court correctly construed the Pension Code.

Free access — add to your briefcase to read the full text and ask questions with AI

Holland v. City of Chicago, (Ill. Ct. App. 1997).

Holland v. City of Chicago (Holland v. City of Chicago) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Craig v. City of Huntington
371 S.E.2d 596 (West Virginia Supreme Court, 1988)
Borough of Beaver v. Liston
464 A.2d 679 (Commonwealth Court of Pennsylvania, 1983)
People v. Acevedo
656 N.E.2d 118 (Appellate Court of Illinois, 1995)
People Ex Rel. Daley v. Datacom Systems Corp.
585 N.E.2d 51 (Illinois Supreme Court, 1991)
Rock v. Burris
564 N.E.2d 1240 (Illinois Supreme Court, 1990)
Quinn v. Retirement Board of the Firemen's Annuity & Benefit Fund
289 N.E.2d 117 (Appellate Court of Illinois, 1972)
Board of Trustees of Firemen's Pension Fund v. Department of Insurance
441 N.E.2d 107 (Appellate Court of Illinois, 1982)
Puss N Boots, Inc. v. Mayor's License Commission of City of Chicago
597 N.E.2d 650 (Appellate Court of Illinois, 1992)
Jahn v. City of Woodstock
425 N.E.2d 490 (Appellate Court of Illinois, 1981)
Hill v. City of Lincoln
330 N.W.2d 471 (Nebraska Supreme Court, 1983)
Hilligoss v. LaDow
368 N.E.2d 1365 (Indiana Court of Appeals, 1977)
Cincinnati Insurance Co. v. Miller
546 N.E.2d 700 (Appellate Court of Illinois, 1989)
Eagan v. Chicago Transit Authority
634 N.E.2d 1093 (Illinois Supreme Court, 1994)
Board of Trustees of Policemen's Pension Fund v. Department of Insurance
356 N.E.2d 171 (Appellate Court of Illinois, 1976)
Kraft, Inc. v. Edgar
561 N.E.2d 656 (Illinois Supreme Court, 1990)
Hohensee v. Regan
138 A.D.2d 812 (Appellate Division of the Supreme Court of New York, 1988)
Buckellew v. Board of Education
575 N.E.2d 556 (Appellate Court of Illinois, 1991)