City Hall says the bill would saddle beleaguered Chicago taxpayers with $18 million in additional costs the first year, $30 million every year after that and $850 million by 2055.
With the spotlight focused on the Mike Madigan saga and the Black Caucus push for criminal justice reform, the Illinois Senate voted Monday to raise retirement benefits for 2,200 Chicago firefighters in a way that would saddle beleaguered city taxpayers with $850 million in added costs by 2055.
The bill passed the Illinois House earlier; it now awaits Gov. J.B. Pritzker’s signature or veto.
It was introduced by Sen. Robert Martwick, D-Chicago, back when Martwick was a state representative. Martwick, a political nemesis of Mayor Lori Lightfoot, has since been appointed to the Illinois Senate to fill the vacancy created by the retirement of state Sen. John Mulroe.
Martwick’s bill removes the “birth date restriction” that has prohibited roughly 2,200 active and retired firefighters born after Jan. 1, 1966 from receiving a simple, 3% annual cost of living increase. Instead, they get half that amount, 1.5% — and it is not compounded.
“The City is concerned to learn of a last-minute attempt to ram through legislation in Springfield to increase the liabilities of the Chicago firefighters’ pension fund that would significantly impact City finances, raise property taxes on Chicagoans and further undermine the stability of the firefighters’ pension fund,” the mayor’s office said Monday, about an hour before the Senate vote.
“This bill, which is unexpectedly under consideration only in the eleventh hour of the abbreviated lame duck session, will cost taxpayers $18 million to $30 million per year, totaling over $850 million by 2055. Legislators who vote for this bill are voting to raise property taxes in Chicago.”
CFD Local 2 President Jim Tracy could not be reached for comment.
In late February, Martwick argued the “birth date restriction” has already been moved five times as a way of masking the true cost to a firefighters pension fund with roughly 25% of assets to meet its future liabilities.
“Remember, they have traditionally given that 3% simple COLA [Cost-of-living adjustment] to these firefighters. They’re going to get that. This just writes it into law. It’s really not adding cost. It’s making that cost transparent,” Martwick said then.
“If we don’t change the provision and we give them the more generous, 3% simple COLA, then payment on the back end will be enormous. There’s no doubt that would make the mathematical calculation of their payment go up. But what it will do is prevent us from kicking the can and making a huge disaster down the road. It’s making the law comply with what the actual practice is.”
Brad Cole, executive director of the Illinois Municipal League, noted state and local municipalities were already “struggling with an enormous unfunded pension liability debt.”
“Instead of rolling up its sleeves and fixing a problem, [the bill] would increase those pension obligations [and] passed during a lame duck session with little notice or debate. This is better left to the normal agreement process, where all sides can negotiate and work out their respective positions in full transparency and dialogue,” Cole said in a statement.
The Senate vote was 37 to 14, with six members not voting and one voting “present.”
Rob Tebbens, the now former political director for Local 2, has referred to the legislation as a “transparency bill” ending the city’s longstanding practice of “fooling themselves” by “masking” the true cost of firefighter pensions.
“This is potentially an age discrimination issue because you’re basing the benefit off of an individual’s age and not their years of service. Based on their age, they’re gonna get a benefit that is less than a Tier 2 benefit” for employees hired after Jan. 1, 2011, Tebbens told the Sun-Times in Februrary.
“By law, that’s something they could possibly take to court and litigate. Doing it legislatively could save the city money in the long run. They wouldn’t have to litigate this issue.”
Lightfoot’s $12.8 billion budget already includes a $94 million property tax increase and annual increases after that tied to the consumer price index.
But Tebbens has argued a Chicago casino easily could generate $30 million a year more.
“They need to throw their cards on the table, show the true liability of this benefit and not mask it with this birthday rule and let the taxpayers know what the true liability is. This is not a benefit enhancement. This is just a reconciling of benefits to the members of my department,” Tebbens has said.
During the mayoral campaign, Martwick and Lightfoot famously got into a shouting match at a campaign news conference Lightfoot called to denounce Martwick-sponsored legislation that would change the Cook County assessor post from an elected to an appointed position.
Martwick had endorsed County Board President Toni Preckwinkle over Lightfoot in the mayoral race. Martwick also earned the mayor’s ire for championing an elected school board bill that would divide the city into 20 districts.
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January 11, 2021 at 02:29PM