Wednesday, March 28, 2018

Another time bomb for Chicago taxpayers

Maybe you think the worst is over for Chicago Public Schools: Springfield sprang for millions in budget and pension relief last year.

That is, the Chicago Teachers' Pension Fund is short another $1 billion, according to the fund's consultants.

Or put differently: If these estimates prove correct, taxpayers are likely on the hook for another $1 billion to shore up the teachers pension fund.

Other distressed Chicago and Illinois public pension funds struggle with the prospect of insolvency - an inability to pay benefits as they come due.

Now the district faces enormous and ever-increasing pension payments because state law requires the Chicago teachers pension fund to be 90 percent funded by 2059.

The more the fund earns in investments, the less it needs from taxpayers.

The pension fund's annual report shows a stellar return for the year ending June 30, 2017: about 12.53 percent.

http://www.chicagotribune.com/news/opinion/editorials/ct-edit-chicago-teacher-pensions-20180327-story.html

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