CIVIC FEDERATION CONTACT: [email protected]
CHICAGO — The City of Chicago's 2025 Annual Comprehensive Financial Report confirms that the 2025 public safety pension legislation enacted by Illinois in August 2025 will substantially increase the City's long-term pension costs. Updated actuarial valuations project that required City contributions to the Police and Fire pension funds will increase by approximately $8.4 billion between 2025 and 2055, or $1.7 billion on a present value basis.
During the consideration of this legislation, the Civic Federation cautioned that increasing pension benefits without providing a dedicated funding source would create significant long-term fiscal pressures for the City. We are now able to see those long-term impacts. This outcome underscores the importance of fully evaluating the downstream fiscal implications of State legislation that imposes new financial obligations on local governments. Pension and other policy changes should be accompanied by sustainable funding plans so that local governments can meet new obligations without further straining future budgets or reducing resources available for essential public services.
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