Chicago's public pensions near insolvency

Chicago's public pension funds are teetering on the brink of insolvency in large part because city officials and union leaders repeatedly exploited the system, draining away billions of dollars in the last decade to serve short-term political needs, a Tribune investigation has found.

Time and again, the funds have been used as a bargaining chip or a piggy bank. Politicians trimmed budgets by offering early retirement incentives and greased union contract deals with increases in benefits. "Pension holidays" allowed the city to avoid paying into workers' retirement funds.

As a result, the funds soon may not be able to keep promises that are codified in the state constitution, threatening the retirements of tens of thousands of rank-and-file union members and leaving taxpayers on the hook for billions of dollars owed to teachers, police officers, firefighters and others.

Read the rest at chicagotribune.com

Source: http://feedproxy.google.com/~r/ChicagoBreakingNews/~3/xBckrw9k2K0/chicagos-public-pensions-near-insolvency.html

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