(WBBM NEWSRADIO) — The city of Chicago’s pension debt grew by $1.8 billion last year, presenting a challenge for Mayor Brandon Johnson’s plans.
The city’s total pension debt is more than $37 billion. That’s for pensions of police officers, firefighters, municipal employees and laborers.
The debt has been growing at a rate of 5% a year for each of the last two years.The city says that’s largely due to inflation and interest rates.
At the same time, assets held by the funds have grown. The combined funding level is 26%, far below other large public funds.
A statement from the mayor says, “While the city still faces several long-term structural challenges, we are charting a better path forward.”
The city paid $242 million to the funds last year. This year over $300 million, and next year, $2.74 billion.
That’s a requirement under a state law intended to raise the funding level to 90% in about 30 years.
Listen to WBBM Newsradio now on Audacy!
Sign up and follow WBBM Newsradio
Facebook | Twitter | Instagram | TikTok