Status of Local Pension Funding Fiscal Year 2012
October 2, 2014
Chicago-area public employee pension funding levels continued to decline in FY2012, with total unfunded liabilities for the ten funds analyzed rising to $37.2 billion from $32.0 billion in FY2011. On average, the ten funds analyzed had an actuarial funding level of 45.5% in FY2012, down from 74.5% in FY2003. For all pension funds supported by the taxes of Chicago residents, including statewide finds, the total unfunded liabilities reached $19,579 per Chicago resident in FY2012.
The Federation’s analysis is based on FY2012 actuarial valuation reports and financial statements for the City’s Police, Fire, Municipal and Laborers’ Funds, the Chicago Teachers’ Pension Fund and the pension funds of Cook County, Forest Preserve District of Cook County, Chicago Park District, Metropolitan Water Reclamation District and the Chicago Transit Authority. This annual report 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 report also summarizes recent pension reform legislation enacted by the Illinois General Assembly including reforms for the City of Chicago Municipal and Laborers' Funds, the Chicago Park District Fund and the MWRD Retirement Fund, all of which have or will go into effect after the time period analyzed in this report.
Astonishing when one asks retirees about this crisis and they respond with the blame game that as no relevance with respect to a remedy. Certainly the pols that caused this problem are responsible and perhaps felons. These funding ratios are serious. Fire Department retirees toast in less than five years. Civic Federation has been reporting on this for a least 10 years.
ReplyDeletePLENTY OF MONEY IN TIF DISTRICTS!! DONT LET THEM STEAL YOUR RETIREMENT!!
ReplyDeleteThe entire political system is co-opted by crony politicians bent on stealing your income to supplement theirs and a small group of crony capitalists;
ReplyDeleteObama decries income inequality in speech after $50,000-a-person fundraiser for Quinn
http://www.chicagotribune.com/news/local/politics/chi-obama-to-raise-money-for-quinn-speak-at-northwestern-20141001-story.html
It would be interesting to know who the 25 donors were. At least you would know whose pocket your pensions are in.
And with all this going on, Ald. Proco Joe Moreno and Joe Moore want to give 20 million to alleged victims of police torture, or maybe more accurately to Flint Taylor and Locke Bowman.
ReplyDeletePick your poison. A massive state and local tax increase or bankruptcy. Be assured one of these will occur. Probably both.
ReplyDeleteBankruptcy is for entities whose liabilities exceed assets. The city has assets valued at more than its liabilities.
DeleteAs you point out, the city also has the power to raise taxes. As you probably know, Chicago's tax rate is about half the rate of nearby suburbs.
Come in off the ledge.