Chicago Mayor Richard M. Daley tossed another rant last week when Gov. Pat Quinn signed the alleged public employee pension fund "reform."
Under the law Quinn signed yesterday, the city's combined annual
contribution for police and firefighter pensions will rise from a projected $309 million in 2015 to about $856 million over the next 25 years, according to the city. The law, which applies to all public-safety workers in Illinois, is meant to protect their retirement benefits by requiring municipalities to boost funding of the plans that cover them, Quinn said.
The legislation requires Chicago to fund its public-safety pensions at 90 percent of projected obligations within 25 years. That is "a higher ratio and shorter timeframe than every other municipality in the state and the state's own employee pension system," according to the statement from Daley's office.
Daley predicts a 60 percent increase in property taxes because of it.
I've got no sympathy for the city or state. They have both been buying off public employees for decades by granting overly generous pension benefits, and then failing to fund the pensions to meet their obligations.
The predicted financial unraveling of both the city and state are upon us.