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Judge Finds City of Harvey Owes Police Pension Fund More Than $7.3 Million

January 14th, 2016

Board of Trustees of the Harvey Police Pension Fund v. Village of Harvey, Circuit Court of Cook County, Case No. 06 CH 15468 (Apr. 3, 2015)

Reimer Dobrovolny & Karlson LLC represents the Harvey Police Pension Board. On April 3, 2015, after years of litigation, Cook County Judge Kathleen Pantle found, the Pension Board is “entitled to a judgment in the amount of $7,334,181.88” against the City of Harvey. In 2006, the Pension Board sued the City due to its chronic underfunding of the Police Pension Fund and the City not turning over money levied in the name of the Pension Fund. The parties entered into a settlement agreement in February of 2008.

In pertinent part, the parties’ agreement states, “Commencing with the fiscal year 2006/2007, and continuing thereafter, the City shall annually levy a tax upon all taxable property of the City, as required in §5/3-125 of the Illinois Pension Code.” Nonetheless, the City failed to levy an annual tax sufficient to properly fund the Pension Fund. The City and the Pension Fund then mutually agreed a jointly selected actuarial firm would calculate the amount owed by the City. Once the actuary determined the amount owed, the City attempted to abandon the agreement.

This time, the City claimed it was not required to fund the Pension Fund until 2040. The Court found this claim unpersuasive. It explained, “Under the plain language of the Agreement, the City was to make payments for past amounts owed and agreed to make actuarial determined payments to the Pension Fund every year. It is undisputed that the City has not done so.” The Court then determined the City owes the Pension Fund $7,334,181.88.  RDK attorneys represent the Police Pension Fund and continue to seek proper funding for its client. The City says it will appeal. We will continue to provide updates regarding this important case.