Hundreds of small pension funds statewide face troubling debt. Is consolidation the way to go?
Mounting debt in more than 650 police and fire pension funds statewide is squeezing municipal budgets, crowding out services and threatening to add to ever-rising property tax bills as officials have repeatedly failed to reach consensus on an overhaul.
Cities and towns have long been at odds with police and firefighter unions over the most talked about solution, consolidating the funds, and a handful of bills aimed at fixing the problem went nowhere in the General Assembly’s spring session.
This summer, however, there’s optimism that a viable reform proposal could soon be put to lawmakers, as a task force appointed by Gov. J.B. Pritzker is set to make recommendations aimed at improving the health of pension funds statewide.
“The issue is so apparent that it’s a matter of how we get this done, not should we get this done,” Illinois Municipal League Executive Director Brad Cole said. “And so, from that perspective, I’m very optimistic that something can come forward for the fall veto session.”
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