CHICAGO (WBBM NEWSRADIO) -- Mayor Lightfoot is warning that Chicago taxpayers are likely going to be on-the-hook to pay for a new firefighter pension measure signed into law Monday.
Gov. J.B. Pritzker signed a bill Monday that supporters said puts Chicago firefighter pensions on par with suburban and downstate systems.
“I’ve always believed that hardworking men and women who have earned their pension shouldn’t pay the price for local or state budget challenges,” said Governor JB Pritzker, in a statement. “HB 2451 creates a system that gives all firefighters certainty and fair treatment. And to make sure that the city can meet its obligations, my administration is working to sell the James R. Thompson Center, which will return to the city’s property tax rolls and is projected to generate $45 million annually for the city and its sister agencies.”
HB 2451 addresses disparate pension benefits among Chicago firefighters.
Before the law, Chicago firefighters who were born after January 1, 1966 were granted a 1.5 percent cost of living adjustment each year up to 20 years, while those born before that receive three percent increases.
Firefighters outside the city receive three percent increases if they were born before 2011. Now, the same holds true for Chicago firefighters.
The new law removes the Chicago pension differences based on date of birth, and also eliminates the 30 percent cap on cumulative cost-of-living adjustments.
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The Chicago firefighter pension is badly underfunded and the mayor warns there might have to be a property tax increase to get the fund on track.
In a tweet Mayor Lightfoot said, "The Governor signing HB 2451 would worsen our unfunded pension liability and place an unnecessary financial burden on Chicago residents who can least afford it. We need to ensure a stable financial future for our city and all our residents. This bill does the opposite."
According to the Tribune, as of 2018, the system was only 18.4 percent funded, with unfunded liabilities totaling more than $5 billion.
“By signing this bill, Gov. Pritzker has once again demonstrated his commitment to fiscal responsibility and protecting future generations of middle class Chicagoans from massive tax increases,” said State Senator Robert Martwick (D-Chicago). “If we ever hope to right our financial ship, we must finally put an end to the irresponsible behavior that put us here in the first place. This law simply ensures that the city confronts the true costs of its pension obligations and makes the difficult decisions it needs to make today.”