Illinois’ ongoing public pension crisis continues to make headlines, with the state Supreme Court ruling in May that landmark legislation overhauling retirement benefits is unconstitutional. As civic leaders debate the right approach to reform, it can be challenging for residents to access nonpartisan facts about the mechanics of public pensions.
To bridge this information gap, the Civic Federation has created two primers on public employee pensions in the State of Illinois, through grant support from The Chicago Community Trust.
Founded in 1894, the Civic Federation is an independent, non-partisan government research organization that provides analysis and recommendations on government finance issues for the Chicago region and the state of Illinois. Grounded in the Civic Federation’s local expertise, both guides focus specifically on the five State of Illinois pension funds and ten large Chicago-area pension funds.
The guide also includes the Civic Federation’s research-driven recommendations to improve the sustainability of pension funds that remain in crisis. Among their recommendations:
Require employer and employee contributions to relate to the fiscal health of their pension funds
Make school districts, universities and community colleges responsible for pension funding and benefit decisions
Reform boards of trustees, to balance stakeholder interests and safeguard assets
Change reporting requirements, to provide increased transparency into pension plans’ financial condition and level of risk
The Trust’s funding for these resources springs from a commitment to civic conversation that engages all residents. By increasing access to information, our region can empower more people to analyze issues, advocate and take action on behalf of their families and communities.
