June 25, 2012
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 Public Schools, Cook County, Cook County Forest Preserve District, Metropolitan Water Reclamation District and the Chicago Transit Authority. It finds that the ten funds analyzed had an aggregate funding deficit of $27.4 billion in FY2010, up from a $4.6 billion deficit in FY2001. On average, the ten funds had an actuarial funding level of 56.2% in FY2010, down from 88.0% in FY2001.