Pritzker signs bill to boost some Chicago police, firefighter pensions
Gov. Pritzker signs bill that boosts officer, firefighter pensions
Some Chicago police officers and firefighters will be getting a big boost to their pension, thanks to a bill signed into law by Illinois Governor JB Pritzker.
CHICAGO - Gov. JB Pritzker signed a bill into law that aims to increase pension benefits for some Chicago police and firefighters, but that could cost the city billions in new costs.
Pritzker signed the bill into law on Friday, a spokesperson confirmed.
What we know:
The new measure essentially offers some pension sweeteners to police and fire employees categorized under what’s called Tier 2.
About a decade ago, in response to the state’s pension crisis, Illinois lawmakers passed a bill creating Tier 2 pensions. It meant that some of the younger government employees would receive slightly reduced benefits than their older peers.
The new law aims to raise some of those pension levels for Chicago police and firefighters.
But it comes with a hefty price tag.
Civic Federation President Joe Ferguson told Fox 32 it will cost taxpayers as much as $7 billion over the next 30 years, $60 million this coming year alone, and then $750 million per year by 2055.
What they're saying:
The added costs could push the city over the fiscal cliff, Ferguson warned.
"This is adding to the city's burden at literally the worst possible time," Ferguson said last month.
The city is projecting a budget deficit of more than $1 billion next year.
Ferguson added the measure amounts to a giveaway to powerful public employee unions that have the ears of certain politicians. The city’s pension funds are currently around 20% funded, which is dangerously low. That means the funds have money to cover only 20% of all those who are eligible to retire as of now.
Still, Chicago FOP head John Cantanzara thanked Pritzker for signing the bill and said the governor "kept his pledge to do right by the men and women of the Chicago Police Department and Chicago Fire Department."