HR0600 101ST GENERAL ASSEMBLY

HR0600 LRB101 15322 MST 64590 r

HOUSE RESOLUTION

WHEREAS, Governor JB Pritzker has proposed to consolidate 649 municipal fire and police pension funds from downstate and suburban governments into two single consolidated funds; and

WHEREAS, The recommendation is based on a final report by the Illinois Pension Consolidation Feasibility Task Force, dated October 10, 2019; and

WHEREAS, According to the Task Force report, the 649 plans cover 43,667 individuals with an actuarial value of assets totaling $14.3 billion and an unfunded liability of $11.5 billion in Fiscal Year 2017; and

WHEREAS, The Task Force report lists nine Illinois pension plans covering the areas of Cook County and the City of Chicago, including the Chicago Teachers' Pension Fund, the Metropolitan Water Reclamation District Fund, the Laborers' and Retirement Board Employees A&B Fund, the Policemen's Annuity and Benefit Fund of Chicago, the Firemen's Annuity and Benefit Fund of Chicago, the Park Employees' and Retirement Board Employees' A&B Fund, the Forest Preserve District Employees' A&B Fund, the Cook County Employees' A&B Fund, and the Municipal Employees' A&B Fund of Chicago, having a $44 billion unfunded liability in Fiscal Year 2016 at 42 percent funded; and

WHEREAS, Moody's Investors have reported that Chicago has the most pension debt of any U.S. city; and

WHEREAS, Several news sources have reported that the Mayor of Chicago has proposed consolidating the city's pension funds with downstate and suburban pension funds in a new statewide system, with Crain's Chicago Business writing on June 28, 2019 that "the mayor is pitching nothing less than a state takeover of the city's cash-short pension funds ... "; and

WHEREAS, On October 24, 2019, Forbes wrote "she (the mayor) has repeatedly voiced her desire for some statewide action, whether it be as part of the proposed consolidation of downstate and suburban police and fire and pension funds ... "; and

WHEREAS, The Chicago Tribune reported on July 2, 2019 that the Governor "did not close the door on Chicago being included in potential consolidation, saying 'There's no part of the conversation that's being left out,'"; and

WHEREAS, Page 20 of the Illinois Pension Consolidation Feasibility Task Force includes the following statement regarding City of Chicago Pension Funds:

"The City of Chicago pension funds have experienced their own unique financial challenges in recent years that warrant specific considerations with respect to the future work of the Task Force. Their current funded levels and projected growth in required employer contributions means significant changes will need to be made to correct course; which may entail greater efficiencies captured through some level of consolidation. As such, the Task Force and the Governor's Office will continue to work with the City of Chicago on this issue as part of the next phase of this work;"; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDRED FIRST GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge Governor Pritzker and the Illinois Pension Consolidation Feasibility Task Force, in further studying the impact of any pension consolidation proposal, to refuse any attempt to consolidate downstate and suburban pension funds with the City of Chicago or Cook County pension funds or any attempt for the State of Illinois to absorb any liability for any City of Chicago or Cook County pension funds.