Illinois General Assembly - Full Text of HR0600
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Full Text of HR0600  101st General Assembly




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2    WHEREAS, Governor JB Pritzker has proposed to consolidate
3649 municipal fire and police pension funds from downstate and
4suburban governments into two single consolidated funds; and
5    WHEREAS, The recommendation is based on a final report by
6the Illinois Pension Consolidation Feasibility Task Force,
7dated October 10, 2019; and
8    WHEREAS, According to the Task Force report, the 649 plans
9cover 43,667 individuals with an actuarial value of assets
10totaling $14.3 billion and an unfunded liability of $11.5
11billion in Fiscal Year 2017; and
12    WHEREAS, The Task Force report lists nine Illinois pension
13plans covering the areas of Cook County and the City of
14Chicago, including the Chicago Teachers' Pension Fund, the
15Metropolitan Water Reclamation District Fund, the Laborers'
16and Retirement Board Employees A&B Fund, the Policemen's
17Annuity and Benefit Fund of Chicago, the Firemen's Annuity and
18Benefit Fund of Chicago, the Park Employees' and Retirement
19Board Employees' A&B Fund, the Forest Preserve District
20Employees' A&B Fund, the Cook County Employees' A&B Fund, and
21the Municipal Employees' A&B Fund of Chicago, having a $44
22billion unfunded liability in Fiscal Year 2016 at 42 percent



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1funded; and
2    WHEREAS, Moody's Investors have reported that Chicago has
3the most pension debt of any U.S. city; and
4    WHEREAS, Several news sources have reported that the Mayor
5of Chicago has proposed consolidating the city's pension funds
6with downstate and suburban pension funds in a new statewide
7system, with Crain's Chicago Business writing on June 28, 2019
8that "the mayor is pitching nothing less than a state takeover
9of the city's cash-short pension funds ... "; and
10    WHEREAS, On October 24, 2019, Forbes wrote "she (the mayor)
11has repeatedly voiced her desire for some statewide action,
12whether it be as part of the proposed consolidation of
13downstate and suburban police and fire and pension funds ... ";
15    WHEREAS, The Chicago Tribune reported on July 2, 2019 that
16the Governor "did not close the door on Chicago being included
17in potential consolidation, saying 'There's no part of the
18conversation that's being left out,'"; and
19    WHEREAS, Page 20 of the Illinois Pension Consolidation
20Feasibility Task Force includes the following statement
21regarding 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
14we urge Governor Pritzker and the Illinois Pension
15Consolidation Feasibility Task Force, in further studying the
16impact of any pension consolidation proposal, to refuse any
17attempt to consolidate downstate and suburban pension funds
18with the City of Chicago or Cook County pension funds or any
19attempt for the State of Illinois to absorb any liability for
20any City of Chicago or Cook County pension funds.