Illinois Policy Institute unveils its “Chicago Pension Reform Plan.” Unlike Mayor Emanuel’s plan, this one does not raise property taxes, immediately cuts the city’s unfunded pension liability in half and the numbers have been confirmed by an actuary. This plan offers REAL pension reform for Chicago.
WHERE & WHEN – The Wit Hotel – 201 N. State Street Chicago, IL 60601 Dickinson 1 Room – 2 PM – Thursday April 3rd.
WHY- As Mayor Emanuel, House Speaker Michael Madigan and Senate President John Cullerton try to quickly push through their pension plan that raises Chicago property taxes, the Illinois Policy Institute is offering an alternative that offers real pension reform and protects both Chicago taxpayers and city workers.
WHAT- John Tillman, CEO of the Illinois Policy Institute, will unveil the details of the pension reform plan for the city of Chicago at the news conference.
The plan immediately reduces the city’s unfunded pension liability by nearly half, to $11.2 billion, protects career city workers with low pensions by means-testing COLAs, and aligns city worker retirement ages with the private sector.
It takes control of pensions away from politicians and creates a hybrid retirement plan that workers own and control. The hybrid retirement plan contains two key elements – a self-managed plan and a Social Security-like benefit. Worker and employer contributions from the city will result in workers puting away 15 percent of their salary each year.
The Mayor’s plan offers no real reform to worker retirements (he only tweaks cost-of living adjustments). Instead, his “fix” is to make taxpayers and workers throw billions more into a failed system run by the same politicians who bankrupted it in the first place.
Additionally, it does nothing to immediately reduce the city’s massive pension debt. Instead, Mayor Emanuel promises to reduce the pension debt in half over 40 years – meaning his reforms do little to save Chicago today.
Media Contacts:
Anne Kavanagh (847) 682-3422, anne@mediapros247.com
Nathaniel Hamilton (630) 386-5029, nhamilton@illinoispolicy.org