Pritzker Adds $300 Million to Chicago Pension Debt With Police, Fire Benefit Boost
Updated
Updated · Illinois Policy · Aug 12
Pritzker Adds $300 Million to Chicago Pension Debt With Police, Fire Benefit Boost
1 articles · Updated · Illinois Policy · Aug 12
Summary
$300 million in added liabilities last year erased much of Chicago’s pension progress, leaving debt down only $106 million despite stronger investment returns and extra city contributions.
Pritzker’s pension sweetener for police and firefighters — the city’s two worst-funded systems — is projected to add $11.1 billion in accrued liabilities by 2055.
Chicago still carries more than $50 billion in pension liabilities against just $14 billion in assets, for a combined funded ratio of 28.1%; three of its four systems are below 30%.
A nearly $500 million shortfall versus the actuarially recommended contribution and an unpaid $130 million supplemental installment this year threaten the city’s path to the state-mandated 90% funding level by 2058.