This report examines the sharp financial decline of Chicago-area public employee pension funds and emphasizes the urgency of pension reform efforts in Springfield. It is intended to provide policymakers, pension trustees, pension fund members and taxpayers with the resources to make informed decisions regarding public employee retirement benefits. The analysis is based on the FY2010 actuarial valuation reports and financial statements for the City of Chicago, Chicago Park District, Chicago…
In light of the State of Illinois’ pension funding crisis, it has become more widely understood that the annual Cost of Living Adjustment, or COLA, plays a large role in the State’s overall pension costs. Just how large, however, has been difficult to pin down. As discussed here, detailed information on pension costs and projected savings due to proposed changes was hard to come by during the General Assembly session that ended on May 31, 2012. Governor Pat Quinn’s legislative working group on…
UPDATE: On Friday, August 3, 2012, Governor Quinn signed into law the pension reforms for the Metropolitan Water Reclamation District Retirement Fund as Public Act 097-0894. This blog post provides background information on the funding status of the Metropolitan Water Reclamation District Retirement Fund and a description of significant reforms to the funding of the pension plan that were approved by the Illinois General Assembly on May 31, 2012. Background The Metropolitan Water…
This article discusses the progress of pension reform efforts in the final days of the Illinois General Assembly’s regular session. The Civic Federation said the reforms being considered would be an improvement over the current situation, but would likely not be enough to stabilize the system over the long-term. Lawmakers failed to act on the bill before the session adjourned late on May 31.
Mayor Rahm Emanuel addressed the Illinois House Personnel and Pension Committee on May 8 with a plan to reform the City of Chicago’s pension funds and warned that essential services would be in jeopardy if pension costs are not reduced. The Civic Federation supports the direction of the Mayor’s proposal and cautions that the proposed reforms represent only the first steps toward stabilizing the City’s financial situation.
Mayor Rahm Emanuel addressed the Illinois House Personnel and Pension Committee on May 8 with a plan to reform the City of Chicago’s pension funds. The Mayor’s proposal includes a five-year increase in retirement age and a ten-year suspension of automatic annual pension benefit increases. The Civic Federation supports the direction of the Mayor’s proposal and the focus on the automatic annual benefit increase which actuaries have identified as one of the most expensive aspects of the pension…
On Tuesday, May 8, 2012, Mayor Rahm Emanuel offered a plan to reform pensions for employees of the City of Chicago, Chicago Public Schools and Chicago Park District during a hearing of the Illinois House of Representatives Personnel and Pensions Committee. The Civic Federation is encouraged by Mayor Emanuel’s pension reform initiative and looks forward to receiving more details on how each of the provisions of the plan will be phased in, their financial impact in terms of cost savings and what…
(CHICAGO) In a new report released today, the Civic Federation’s Institute for Illinois’ Fiscal Sustainability supports Governor Quinn’s proposed budget for FY2013. The $57.4 billion budget proposal acknowledges the depth of the State’s financial problems and would put Illinois finances on the road to recovery with major structural reforms to the State’s Medicaid program and pension systems. This is the first time the Institute has supported a proposed budget in four years of providing fiscal…
The Civic Federation supports Governor Pat Quinn’s $57.4 billion FY2013 recommended operating budget, because it acknowledges the depth of the State’s financial problems and would put Illinois finances on the road to recovery with major structural reforms to the State’s Medicaid program and pension systems. The Governor’s proposed FY2013 budget makes several important steps toward Illinois’ fiscal recovery. The proposal does not rely on borrowing, a departure from the State’s pattern of…
This article compares underfunding of the Michigan Public Employee Retirement System with similar crises affecting other teacher and public-employee pension systems in the Midwest. The Civic Federation spoke about the financial crisis facing the Illinois Teachers Retirement System (TRS) and the recent announcement by the TRS Board that they no longer have confidence in the State of Illinois to meet its existing funding obligations to the retirement system.
