Today's announcement is yet another reason why the pension is our biggest issue. The story on the Tribune's Clout Street blog only underscores the urgency of this situation.
Clearly, it has to be front and center in everyone's mind, whether you are retired, or retirement is 25 years away. Promises were made, and we need to fight to make sure they are kept!
Police, firefighters would pay more pension costs under Daley administration proposal
Share | Posted by John Byrne at 2:18 p.m.
Mayor Richard Daley's administration today unveiled a plan for police and fire pension reform that would increase employee contributions as part of a package it hopes would save Chicago property taxpayers $240 million per year compared to a bill Gov. Pat Quinn signed into law earlier this month.
Gene Saffold, the city's chief financial officer, said the Daley administration has not spoken to state lawmakers or labor leaders about supporting the city's alternate plan. But Saffold hopes the new General Assembly will address Daley's concerns that the new pension reform law will place an onerous burden on taxpayers with a $550 million property-tax hike beginning in 2015.
The administration's proposal would raise police officers' contribution to their pension plan from 9 percent to 12 percent between 2015 and 2018, and raise firefighters' share from 9.1 percent to 12.1 percent.
The measure the General Assembly recently approved includes no bump in employee contributions, a fact Daley railed against to no avail as the bill advanced in Springfield late last year. The city's proposal also would require that the public safety pension systems be funded only to 80 percent rather than 90 percent of their total obligations, and extend the timeline to reach that benchmark from 30 years to 50 years.
With those changes, Saffold said the property tax increase in Chicago in 2015 still would be $310 million. Lawmakers, however, say the city can cover the increased pensions costs with other revenue sources than a property-tax increase.
"This proposed legislation does not comprehensively address our pension issues, but it does significantly reduce the extreme burden on taxpayers caused by the recent changes to the public safety pension law by the 96th General Assembly and Governor Quinn," Saffold said at a City Hall news conference.
With Daley departing office in mid-May, it's likely pension relief would fall to his successor.
Clearly, it has to be front and center in everyone's mind, whether you are retired, or retirement is 25 years away. Promises were made, and we need to fight to make sure they are kept!
Police, firefighters would pay more pension costs under Daley administration proposal
Share | Posted by John Byrne at 2:18 p.m.
Mayor Richard Daley's administration today unveiled a plan for police and fire pension reform that would increase employee contributions as part of a package it hopes would save Chicago property taxpayers $240 million per year compared to a bill Gov. Pat Quinn signed into law earlier this month.
Gene Saffold, the city's chief financial officer, said the Daley administration has not spoken to state lawmakers or labor leaders about supporting the city's alternate plan. But Saffold hopes the new General Assembly will address Daley's concerns that the new pension reform law will place an onerous burden on taxpayers with a $550 million property-tax hike beginning in 2015.
The administration's proposal would raise police officers' contribution to their pension plan from 9 percent to 12 percent between 2015 and 2018, and raise firefighters' share from 9.1 percent to 12.1 percent.
With those changes, Saffold said the property tax increase in Chicago in 2015 still would be $310 million. Lawmakers, however, say the city can cover the increased pensions costs with other revenue sources than a property-tax increase.
"This proposed legislation does not comprehensively address our pension issues, but it does significantly reduce the extreme burden on taxpayers caused by the recent changes to the public safety pension law by the 96th General Assembly and Governor Quinn," Saffold said at a City Hall news conference.
With Daley departing office in mid-May, it's likely pension relief would fall to his successor.
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