Court issues tough blow to Chicago pension overhaul

March 24, 2016 2:24 PM

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CHICAGO — The debt-plagued city of Chicago was dealt a difficult blow Thursday when the Illinois Supreme Court ruled the city's plan to reduce its mammoth $20 billion public-worker pension deficit was illegal.

The plan, passed in 2014, sought to reduce pension benefits while requiring higher city contributions. But the state's high court ruled the changes violated the Illinois constitution's protection against reducing promised benefits.

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