Daley Unhappy With New Pension Reform Law
CHICAGO (CBS/WBBM) -- Mayor Richard M. Daley is less than pleased with a new police and firefighter pension law just signed by Gov. Pat Quinn.
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The pensionable salary is capped, at just under $107,000.
But the legislation also requires Chicago and other municipalities across the state to move to a new funding formula. Under the new law, municipalities must fund the pensions for their workers at 90 percent by the year 2041.
But the City of Chicago has a tighter deadline. The city is required under the law to reach a 90-perecnt funded ration in 25 years.
The mayor's office says this is a higher ratio and shorter time frame than any other municipality in the state.
The legislation also mandates that the entire pension contribution increase must be funded by a city property tax hike.
Under the new law, the city's total combined annual contribution is expected to increase by more than $500 million a year starting in 2015.
The mayor's office says it is unfair to shift the proposed contribution increase solely onto the employer and taxpayer, without asking employees either to contribute more or to give something back.
