Fun with numbers
Wednesday, Feb 26, 2020
* Sun-Times story about Sen. Rob Martwick’s HB2451…
Basically, the city has been agreeing to pay firefighters a pension higher than what the firefighters are legally entitled to. Since the state calculates the city’s pension contributions based in state law, the city doesn’t have to account for the difference, which artificially inflates the unfunded liability.
The city’s financial atrocities never cease to amaze me. I did not realize they were doing this. Unbelievable.
So, the city has three choices: 1) Only give retired firefighters a 1.5 percent annual increase and don’t ever increase it to 3 (which I’m not sure they can do for firefighters that already are receiving that 3 percent and doing so would invite a lawsuit); 2) Continue to give retired firefighters 3 percent increases, but pay into the system like they’re only getting 1.5 percent, thereby driving up the unfunded liability every month; 3) Continue giving retired firefighters 3 percent annual increases and pay into the pension fund accordingly.
The bill passed the House last April 72-40.
* The mayor’s office is opposed because of the short-term costs…
Better get that casino going soon.