* Shruti Singh at Bloomberg…
Police and fire pension costs for DeKalb, Illinois, use up about 20% of general fund revenue, up from 10% in 2014, city manager Bill Nicklas said in an interview. The entire property tax levy for the city’s proposed 2022 budget will go toward the two pension funds and some more revenue from sales taxes may be tapped for the retirement system payments, he said.
“Of the options that are out there, consolidation seems to be a good place to begin,” Nicklas said.
But underscoring how difficult this shift is, the DeKalb Police Pension Fund doesn’t agree with city officials and is listed as one of the plaintiffs in the lawsuit.
“I don’t think many of us trust the government of Illinois to handle our money given their history,” said Jim Kayes, president of the DeKalb Police Pension Fund board, in an interview.
Yeah, OK. The reason they’re paying such higher pension costs in DeKalb now is because they let their unfunded liability get to 53 percent.
Also, the above-mentioned lawsuit filed by a handful of local pension fiefdoms against the state’s massive consolidation law seems a bit off…
The lawsuit claims that the law takes away the plaintiffs’ local authority and “diminishes and impairs the pension benefits” to which they are entitled. Illinois’ constitution bans any reduction in worker retirement benefits. […]
The state said in a filing in reply that Illinois’s constitution protects the payments that retirees are entitled to, but that doesn’t extend to areas like choosing the entity that manages the retirement plan.
I suppose we’ll see.