20150629 PR-Village wins Sheahan pension appeal-pension liability confirmed as invalidYB 9QK
Press Relp
FOR IMMEDIATE RELEASE
Contact: Riccardo F. Ginex
Phone: (630) 368-5020
Email: rginex@oal<-brool<.org
VILLAGE WINS SHEf1HAN PENSIONAPPEAL
OAK BROOK, IL —June 29, 201 The Second District Appellate Court has agreed with the
Village of Oak Brook and confirmed the invalidity of much of the pension liability related to
former Oak Brook Police Chief Thomas Sheahan. In a 20 -page written opinion, Justice Zenoff
ruled that Mr. Sheahan's attempts to transfer previous credits from service with Deerfield and
Chicago violated the Illinois Pension Code. The Appellate Court decision affirmed the June 17,
2014 Circuit Court decision that had likewise ruled in favor of the Village.
"Left unchecked, Mr. Sheahau's improper transfers would have left the Village with an unfunded
liability of over $740,000, notwithstanding that Mr. Sheahan worked in the Village for just over
six years," said Village President Gopal Lalmalani. "I am very pleased that the Appellate Court
honored the rule of law to prevent yet another example of pension abuse in our state."
The case arose after Mr. Sheahan resigned from the Village. The Village then received a notice
of pension liability for Mr. Sheahan from the Illinois Municipal Retirement System of more than
$740,000. The Village immediately contested the liability and appealed to the IMRF Board,
which upheld the pension following a full hearing. The Village appealed to the Circuit Court.
"The Illinois Pension Code is a complicated web of statutory provisions that encourages some
public employees to on for loopholes to maximize their pension payouts," explained Village
Attorney Peter Friedman. He continued -- "while the taxpayers roust foot the bill for loopholes
that are legal, the taxpayers and the courts should not allow public employees who do not
comply with the law to reap windfalls. Mr. Sheahan sought to exploit the Pension Code, at the
expense of Oak Brook residents, by attempting to transfer his previous pension service credits
into a special IMRF pension program for police chiefs (called SLEP), but he did not comply with
the law when doing so, as today's ruling rightly again confirms."
Mr.
Sheahan may appeal
further to the Illinois
Supreme Court, but that is
not an appeal
of right
and
the Illinois Supreme
Court may decline to
hear the case.
About Oak Brook:
Founded in 1958, the Village of Oak Brook is located 15 miles west of downtown Chicago and is
in proximity to the junction of Interstates 88, 294, and 290. The Village consists mostly of
residential subdivisions, with the exception of the Oak Brook Center shopping mall, other retail
and office properties along 22nd Street and Interstate 88. Oak Brook is the home of many
corporate offices, most notably, the world headquarters of McDonald's Corporation, Ace
VILLAGE OF
OAK 07�K
Hardware, Tree House Foods, Inland Real Estate and the service club organization Lions Clubs
International. Oak Brook is also known for being one of the few municipalities in the Chicago
area that does not levy a property tax on residents or businesses. To learn more about Oak Brook,
please visit http://wwwloak-brook.ore.