City of Chicago Commitment to City Workers with $306.6M Advance Pension Contributions

Lawndale News Chicago's Bilingual Newspaper - Business

Mayor Brandon Johnson and the City of Chicago announce a significant milestone in the city’s commitment to its workforce and pensioners – a $306.6 million advance payment to the City’s four pension funds. The advance contributions, in addition to the City’s statutorily required annual contributions, signify a proactive approach to boosting the financial position of the pensions. Chicago’s commitment to pension policies, stable reserves, and enhanced financial operations are key factors. The City’s substantial economic base and reduced structural deficit demonstrate notable strengths, acknowledged through more than a dozen other credit upgrades over the past 18 months, by Standard & Poor’s, Fitch Ratings, and Kroll Bond Rating Agency.  The Advance Pension Payment policy is projected to reduce pension contributions by approximately $3 billion over the next 30 years. This commitment to funding discipline ensures that promised benefits can be paid and the City can proactively address the legacy of underfunding the City’s pensions, promoting intergenerational equity. Mayor Johnson’s passion for investing in people is evident in the City’s sound fiscal policies and management of long-term obligations.  Pension fund allocations: 

• Policemen’s Annuity and Benefit Fund of Chicago: $79.9 million 

• Fireman’s Annuity and Benefit Fund of Chicago: $28.3 million 

• Municipal Employees’ Annuity and Benefit Fund of Chicago: $178.1 million 

• Laborers’ and Retirement Board Employees’ Annuity and Benefit Fund of Chicago: $20.3 million 

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