Pension Insolvency in Chicago
Chicago's pension systems are at risk of becoming insolvent, which would require the city to either reduce benefits or make significant cuts to city services.
The city's four pension funds have a combined debt that exceeds that of 44 states, with seven of the nation's 10 worst-funded local pensions located in Chicago.
- The state's recent passage of a police and fire pension sweetener adds $11 billion in new liabilities.
- Estimates suggest that these benefits have dropped the funding ratio for Chicago police and fire pensions to 18%.
Illinois' comeback story starts here.
In September, Mayor Brandon Johnson had to use the city's cash reserves to cover $28 million in fire pension payments to avoid asset sales.
Autor's resume: Pension insolvency threatens Chicago.