Full Text of HR0600 101st General Assembly
HR0600 101ST GENERAL ASSEMBLY |
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| 1 | | HOUSE RESOLUTION
| 2 | | WHEREAS, Governor JB Pritzker has proposed to consolidate | 3 | | 649 municipal fire
and police pension funds from downstate and | 4 | | suburban governments into two
single consolidated funds; and
| 5 | | WHEREAS, The recommendation is based on a final report by | 6 | | the Illinois Pension
Consolidation Feasibility Task Force, | 7 | | dated October 10, 2019; and
| 8 | | WHEREAS, According to the Task Force report, the 649 plans | 9 | | cover 43,667
individuals with an actuarial value of assets | 10 | | totaling $14.3 billion and an
unfunded liability of $11.5 | 11 | | billion in Fiscal Year 2017; and
| 12 | | WHEREAS, The Task Force report lists nine Illinois pension | 13 | | plans covering the
areas of Cook County and the City of | 14 | | Chicago, including the Chicago Teachers'
Pension Fund, the | 15 | | Metropolitan Water Reclamation District Fund, the Laborers' | 16 | | and
Retirement Board Employees A&B Fund, the Policemen's | 17 | | Annuity and Benefit Fund
of Chicago, the Firemen's Annuity and | 18 | | Benefit Fund of Chicago, the Park Employees'
and Retirement | 19 | | Board Employees' A&B Fund, the Forest Preserve District | 20 | | Employees'
A&B Fund, the Cook County Employees' A&B Fund, and | 21 | | the Municipal Employees' A&B
Fund of Chicago, having a $44 | 22 | | billion unfunded liability in Fiscal Year 2016 at 42
percent |
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| 1 | | funded; and | 2 | | WHEREAS, Moody's Investors have reported that Chicago has | 3 | | the most
pension debt of any U.S. city; and | 4 | | WHEREAS, Several news sources have reported that the Mayor | 5 | | of Chicago has
proposed consolidating the city's pension funds | 6 | | with downstate and suburban
pension funds in a new statewide | 7 | | system, with Crain's Chicago Business writing
on June 28, 2019 | 8 | | that "the mayor is pitching nothing less than a state takeover | 9 | | of
the city's cash-short pension funds ... "; and | 10 | | WHEREAS, On October 24, 2019, Forbes wrote "she (the mayor) | 11 | | has repeatedly
voiced her desire for some statewide action, | 12 | | whether it be as part of the
proposed consolidation of | 13 | | downstate and suburban police and fire and pension
funds ... "; | 14 | | and
| 15 | | WHEREAS, The Chicago Tribune reported on July 2, 2019 that | 16 | | the Governor "did
not close the door on Chicago being included | 17 | | in potential consolidation, saying
'There's no part of the | 18 | | conversation that's being left out,'"; and
| 19 | | WHEREAS, Page 20 of the Illinois Pension Consolidation | 20 | | Feasibility Task Force
includes the following statement | 21 | | regarding City of Chicago Pension Funds: |
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| 1 | | "The City of Chicago pension funds have experienced their | 2 | | own unique
financial challenges in recent years that | 3 | | warrant specific considerations
with respect to the future | 4 | | work of the Task Force. Their current funded
levels and | 5 | | projected growth in required employer contributions means
| 6 | | significant changes will need to be made to correct course; | 7 | | which may entail greater efficiencies captured through | 8 | | some level of consolidation. As
such, the Task Force and | 9 | | the Governor's Office will continue to work with
the City | 10 | | of Chicago on this issue as part of the next phase of this | 11 | | work;"; therefore, be it
| 12 | | RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE | 13 | | HUNDRED FIRST GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that | 14 | | we urge Governor Pritzker and the Illinois Pension | 15 | | Consolidation Feasibility Task Force, in further studying the | 16 | | impact of any pension consolidation proposal, to refuse any | 17 | | attempt to consolidate downstate and suburban pension funds | 18 | | with the City of Chicago or Cook County pension funds or any | 19 | | attempt for the State of Illinois to absorb any liability for | 20 | | any City of Chicago or Cook County pension funds.
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