Chicago's pension funds lack assets to guarantee payments to the city's workers and will run out of money within a decade without changes, a commission said Friday.
Mayor Richard M. Daley's panel, appointed two years ago to examine pension funds for groups including firefighters, police officers, city laborers and school employees, found the funds had a combined actuarial liability of about $25.4 billion and assets of $10.9 billion at the end of 2009, according to a news release from the city.
“The financial health of each of the city's four pension funds has deteriorated,” according to a statement from the city. “The city and its taxpayers will have to increase the amount they contribute.”
The $793 million of contributions due in 2012 would have to increase by $660 million then and $710 million every year after for at least 50 years, according to the statement.