Chicago and Cook County residents who followed the pension debate at the State of Illinois might be surprised by the fact that proposals for pension reform for the City of Chicago and Cook County and pension reform legislation enacted for the Chicago Park District all require increases to employer contributions. This is in direct contrast to an Illinois process that focused on evaluating how much various proposals would save the State in contributions immediately and over time. Why won’t the…
This article discusses a tentative agreement reached to stabilize Cook County’s Pension Fund through a combination of benefit and funding reforms. A recent Civic Federation blog post compared funded ratios of the Cook County Pension Fund between FY2004 and FY2013. At the Fund’s current rate of decline, it is projected to become insolvent in 2038.
New actuarial reports released by the Cook County Pension Fund this month show a slight improvement in the Fund’s financial position in 2013 due to better than expected investment returns. Despite the improved performance, however, the Fund is projected to become insolvent by 2038. The Cook County Pension Fund has experienced a sharp decline in funding over the last decade, from a funded ratio of over 90% as recently as FY2000. While there is no official industry standard or best practice for…
A settlement agreement on Rhode Island’s pension reform litigation that was presented to pension system members for a vote has been rejected even though most groups overwhelmingly backed it. The vote was structured such that any one group of members could scotch the agreement if more than 50% voted against the settlement proposal. Sixty-one percent of police union members representing only 1% of eligible voters affected by the 2011 legislation voted against the agreement and so a trial to…
The Civic Federation joined with the Federal Reserve Bank of Chicago on April 23, 2014 to co-host a conference on ways that municipalities in Illinois can avoid or resolve fiscal stress. Experts, practitioners and academics from around the country gathered to discuss Chicago’s fiscal future and how different state intervention and revenue policies around the country have impacted local governments. Attendees to the sold out conference included civic and business leaders and government officials…
This article discusses Governor Quinn’s recent indication that he would consider increasing the share of State income taxes distributed to local governments if the 2011 income tax rates were made permanent. The Civic Federation recommended restoring the full 10% share of income tax revenues to local governments in its FY2015 State of Illinois Budget Roadmap. Municipalities did not receive additional revenue from the 2011 tax increase.
This article discusses the uncertain status of pension reforms for two City of Chicago funds. The reforms were passed by the Illinois General Assembly April 8, but Governor Quinn has not yet announced whether he will sign the legislation. The Civic Federation said it is hard to understand how the City could move beyond constant fiscal uncertainty without developing a comprehensive financial plan.
This article discusses the reforms for two city pension funds passed by the Illinois General Assembly earlier in April, which are still waiting for Governor Quinn’s approval. It cites Chicago CFO Lois Scott’s presentation on Chicago’s financial future at the Civic Federation and Federal Reserve Bank’s April 23 Forum, “After Detroit: How will Illinois and its Communities Respond?”
On April 8, 2014, the Illinois House of Representatives and Senate approved Senate Bill 1922, which contains reforms and funding increases intended to stabilize the financial condition of two of the City of Chicago’s four pension funds. The bill awaits Governor Quinn’s review. This blog post is an update to a post from two weeks ago that provided the details of an earlier version of the reform bill. The approved version contains some changes, described below. Amendments made to Senate…
This segment discusses Governor Quinn’s opposition to the property tax component of Chicago’s recent pension reform plan for its Municipal and Labor funds. The Civic Federation said increased property taxes have to be part of a solution to save the pension funds, and noted the Chicago Park District’s successful pension reform package included increased employer contributions that will likely be funded by property tax increases.
