The Civic Federation submitted the following written testimony in opposition to SB 1639 and SB1630 to Chairperson Kifowit and Members of the Personnel & Pensions Committee on May 10, 2023. The same written testimony was also submitted by the Civic Federation to Chairperson Martwick and Members of the Senate Special Committee on Pensions on May 18, 2023. Dear Chairperson Kifowit and Members of the Personnel & Pensions Committee: The Civic Federation is writing in opposition to…
On April 20, 2023 two bills passed out of committee in the Illinois House of Representatives that would increase pension benefits for Chicago firefighters hired after 2010. Senate Bills 1629 and 1630 are now on second reading in the House after passing unanimously in the Senate earlier in the session. The Civic Federation is concerned about these and other proposals that would enhance benefits for Tier 2 government employees (those hired since January 1, 2011) without any analysis completed…
This blog post examines the Chicago Public Schools’ contributions to the Chicago Teachers’ Pension Fund in the FY2023 budget and the funding status of the Pension Fund based on financial health indicators. Additional descriptive information about teachers’ pension benefits and history can be found in past budget analyses.[1] Members of the Chicago Teachers’ Pension Fund Certified CPS teachers are enrolled in the Public School Teachers’ Pension and Retirement Fund of Chicago (known as the…
Over the summer, Illinois Governor JB Pritzker signed into law Public Act 102-0263, which makes changes to the funding schedule for the Chicago Park District’s pension fund, allows for pension obligation bonds and creates a third tier of benefits. The Park District Pension Fund has a complicated funding history that involves State pension reforms that were allowed to go into effect, then partially struck down, then subject to an agreed order, then returned to the previous inadequate multiplier…
The Civic Federation released its annual analysis of the City of Chicago’s proposed budget this week. Included in the report was a section dedicated to the budgetary impact of the City’s four pension funds and evaluating trends in their funded status. This blog post reproduces that chapter for readers who might not otherwise see it. Pensions in the FY2022 City of Chicago Budget The City of Chicago’s four pension funds are severely underfunded. A combination of statutory underfunding, benefit…
As laid out in many Civic Federation blogs over the last several years, the State’s two pension buyout plans, which were enacted as part of the FY2019 budget legislation, were supposed to generate hundreds of millions of dollars of budgetary savings. But issues with implementation and with the savings projection itself meant that only a very small portion of those savings have actually been recognized. The Commission on Government Forecasting and Accountability reported in November that none of…
In a proposal to stabilize underfunded pensions for Forest Preserve District of Cook County employees and retirees, the Forest Preserves’ Conservation and Policy Council has appealed to the Cook County Board of Commissioners to add the Forest Preserves’ pension fund to an existing intergovernmental agreement (IGA) the County has with the Cook County Pension Fund. Cook County’s IGA allows the County to contribute an amount above the statutorily required contribution to the Cook County Pension…
A recent report shows that Illinois’ statutorily required contributions to its five pension funds are expected to total $9.8 billion in the upcoming fiscal year. How much of the State’s budget will be devoted to pension payments? The answer is not as simple as it might appear and has been the subject of some confusion, including here and here. The main reason for the mistake is that most commentators focus on the General Funds budget, while State pension contributions come from other State…
Click here to read the full report. Click here to read the press release for this analysis. EXECUTIVE SUMMARY The Civic Federation supports Mayor Lightfoot’s proposed FY2020 local funds budget of approximately $9.9 billion, but with several significant concerns. Entering FY2020 Mayor Lightfoot faced a historic $838.2 million Corporate Fund budget deficit driven largely by a $281.2 million increase to the City’s statutory contribution to the police and fire pension funds. The deficit is also…
For more than a decade, the Civic Federation has strongly supported consolidation of hundreds of police and fire department pension funds across Illinois to improve investment returns and reduce administrative costs. The step is now being considered by the General Assembly following recommendations in October 2019 by Governor J.B. Pritzker’s task force on pension consolidation. Senate Bill 616 would consolidate the assets of Illinois’ 649 public safety funds, not including those in Chicago,…
