Chicago pensions

100 Club of Chicago

Gov. Bruce Rauner has vetoed a plan to reduce Chicago's payments to its police and fire pension funds for each of the next five years.

He says it's the kind of “irresponsible” practice that led to Illinois' deep financial woes.

Mayor Rahm Emanuel said after the Friday veto that the Republican governor “just told every Chicago taxpayer to take a hike.'' Emanuel says it will lead to ``the Rauner tax.''

The Legislature approved the measure last year. Democrats said it would save the retirement funds without crushing taxpayers.

"Courtroom One Gavel" by Flickr User Beth Cortez-Neavel / (CC BY 2.0)

Justices had some harsh words Thursday for city officials in a ruling.

For years, the City of Chicago skipped putting money into pension funds. And now, attorneys say two pension accounts will run out of money in a decade.

Mayor Emanuel had come to an agreement with several unions to reduce employee benefits to make sure they even have a retirement account, but Illinois Supreme Court justices said the state constitution won’t let them do that.

Chicago Borrowing $220 Million for Pensions

Mar 23, 2016
Wikimedia/Daniel Schwen

The city of Chicago is borrowing $220 million to show it has enough money for pension payments later this year.

The mayor’s office is banking on Illinois Gov. Bruce Rauner to sign a bill that would reduce this year’s big police and fire pension payment. That payment isn’t due just yet, but the city’s budget office says state law requires them to show there’s enough money. The city decided to draw from a line of credit that has a 3 percent interest rate.

Mayor.cityofchicago.org

Attorneys for the City of Chicago say city employees will be worse off if Supreme Court justices strike down their pension plan.

A Cook County judge sided with unions in ruling against changes Mayor Rahm Emanuel wants to make to city employees’ retirement benefits.

In the city’s appeal to the Illinois Supreme Court, attorneys write that the two pension funds will run out of money within 13 years without changes. They argue employees may sue the city to put money into the pensions.

Quinn Signs Chicago Pension Measure

Jun 10, 2014
state of Illinois

Illinois Governor Pat Quinn has signed a bill that reduces the retirement benefits of some City of Chicago employees.

Quinn signed the controversial pension bill in private.

But he released a statement saying he was quote - “dismayed by the ill-advised attempt” to have lawmakers impose a tax increase on Chicago residents.

An earlier version of the measure called on Chicago’s city council to raise property taxes - but that was removed from the final version.

Chicago Pension Measure Headed To Quinn's Desk

Apr 9, 2014
cityofchicago.org

A bill to cut retirement benefits for some City of Chicago employees has made its way to the governor’s desk. But it’s not clear whether he will sign it.

In one day - the Illinois State House and Senate approved a measure affecting more than 56,000 city laborers and municipal workers.

Chicago Mayor Rahm Emanuel sounded optimistic when he spoke to reporters after the plan cleared the state legislature Tuesday.