Issues: Local Government Pensions
The Civic Federation believes that public pension systems must be sustainably funded and well-managed. The Federation’s national reputation for expertise in pension funding and reform has been earned through years of in-depth research and analysis of employee retirement systems statewide. Read our analyses, recommendations for reform, and opinions about local public pension systems here.
The Civic Federation supports the Chicago Transit Authority’s (CTA) proposed FY2015 budget of nearly $1.4 billion. The budget represents an improved level of fiscal stability made possible by the CTA’s efforts in past years to secure its pension fund and modernize its labor practices. The agency is working under a more sustainable labor agreement, no longer relies heavily on one-time revenue sources and has balanced its budget for the past three years without increasing base fare rates.
The Civic Federation supports Cook County’s proposed FY2015 operating budget of $3.7 billion for holding the property tax levy relatively flat and not including any new fines or fees. Instead, a $168.9 million shortfall is closed through a combination of revenue increases, expenditure reductions and management efficiencies. Under the leadership of President Preckwinkle and her team, Cook County is continuing to become a more accountable and efficient steward of public resources.
Despite this progress, uncertainty continues to surround two areas that are central to the County’s fiscal well-being: CountyCare and proposed County pension reforms.
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.
In December 2010 the Illinois General Assembly passed and then Governor Quinn signed legislation (Public Act 96-1495)...
This week the Civic Federation released a set of two primers on public employee pensions in the State of Illinois. The...
Two lawsuits seeking to overturn a pension reform law for the Chicago Municipal and Laborers’ funds have been put...
The Civic Federation’s previous blog examined the long-term debt of eight major local governments in northeastern...
10 N. Dearborn St., Suite 800, Chicago, Illinois 60602 | Phone: 312-201-9066 | Fax: 312-201-9041
Email: [email protected] | © Copyright 2015 The Civic Federation