Chicago pension reform measure passes Illinois Legislature
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The Illinois Senate passed a pension reform bill aimed at improving the funding of two Chicago retirement funds for laborers and municipal workers.
The measure, which passed the Senate 31-23 on Tuesday after passing the House of Representatives earlier that day, raises employee contributions and reduces retiree cost-of-living adjustments for the $5.1 billion Chicago Municipal Employees' Annuity & Benefit Fund and the $1.4 billion Chicago Laborers' Annuity & Benefit Fund.
The current bill removes a Chicago property tax increase that was originally proposed last week following a compromise between some of the city's labor unions and Chicago Mayor Rahm Emanuel's administration. The property tax increase component to raise pension contributions will now need approval from the Chicago City Council.
The bill is intended to improve funding for the laborers plan, which is 58% funded, and the municipal plan, which is 38% funded.
The bill awaits the signature of Illinois Gov. Pat Quinn.
Rob Kozlowski writes for Pensions & Investments, a sister publication of Business Insurance.
