By: Mark Glennon*
Which is worse, financial malfeasance or a flagrant lie to justify it? Take your pick. Both are nothing short of astonishing when it comes to Gov. JB Pritzker’s signature Friday on a bill hiking benefits for two of Chicago’s pensions that already had been bled nearly dry.
A City of Chicago actuarial analysis of the bill says the change “would increase the city’s pension liabilities by more than $11 billion across the Police and Fire funds,” the Chicago Tribune reported, while dropping the funding levels of both down to less than 18%.
Those funds were already desperately underfunded, having had only 25% of the money necessary to pay out pension benefits for work already performed. They have the lowest funded ratios for local pension plans in the country.
They are so poorly funded that their combined unfunded liabilities are larger than 43 states — including New York, Michigan, and Florida, according to a recent study. If Chicago does nothing and lets its pension problem continue, then “Chicago becoming the next Detroit is not just a possibility — it’s inevitable.” That’s from an op-ed last week by a former chief financial officer of the city.
So, what does the state, which makes the law for city pensions, do about it? It expanded benefits while providing no funding source. Next year alone, Chicago will have to come up with an extra $60 million on its $1.5 billion pension tab in 2027, and that increase will grow to more than $753 million for 2055. That’s according to the city’s actuarial analysis, but the state didn’t even bother do its own actuarial analysis on the cost.
What possible excuse does the state have for the new law?
According to the bill’s sponsor and Pritzker, the benefit spike was needed to bring the city’s Tier 2 pensions into compliance with federal law that essentially requires benefits at least equal to what Social Security provides. Sen. Robert Martwick (D-Chicago) was the sponsor, and that claim of his was echoed by Pritzker when he signed the bill.
Here is what Pritzker’s spokesman said: “The legislation codifies adjustments the city of Chicago has been implementing over the years to tackle pension system challenges and represents a proactive step to prevent more significant financial or legal issues in the future.”
That’s unquestionably a reference to the alleged Tier 2 problem under federal law.
But it’s a big, fat lie to claim the pension spike was required by federal law. The supposed federal problem is just a subterfuge for another benefit increase.
Not one Illinois Tier 2 state or local pensioner has ever been identified whose benefits are too low under federal law. The problem has turned out to be a theoretical one that might arise in the future, but requires no action today beyond a minor, inexpensive safeguard.
That far less expensive alternative was already blessed by the state for its own pensions, which are much bigger than Chicago’s. In recent legislation the state authorized a $75 million reserve fund to cover any additional benefits that might be required for particular pensioners if their benefits ever fell short of federal requirements. Common sense prevailed, for once, as we wrote about that measure. We’ve long been calling for that measure or something similar, with articles here, here, here, here and here.
The availability of that far cheaper alternative is one reason why every major independent voice outside of Springfield said Pritzker should have vetoed the new law. The Civic Federation, Commercial Club, Better Government Association, Chicago Tribune editorial board all wanted a veto. Even Democratic Comptroller Susanna Mendoza criticized it, and Chicago Chief Financial Officer Jill Jaworski said, “This is adding to the city’s burden at literally the worst possible time,” and she called the bill an unfunded mandate foisted on the city by state lawmakers.
That’s exactly what it is – an unfunded mandate foisted on the city.
In fairness, another rationale offered by the bill’s supporters is that it will set level benefits for the two Chicago pensions with other police and fire pensions downstate.
Yes, ideally, consistency would be nice, but that’s a luxury Chicago simply cannot afford. Somebody apparently needs a lecture on what “you have no money” means. For that, I have a suggestion. Pritzker and our lawmakers should be forced to watch this wonderful clip of a financial advisor trying to explain it to Walter Matthau’s character in A New Leaf. Like Pritzker, that character is a trust fund recipient.
Gov. Pritzker and you other lawmakers, please watch it closely. Maybe you’ll eventually get it.
*Mark Glennon is founder of Wirepoints.
Audio and summary 
If this bill passes, say goodbye to local control over all Illinois parks and expect to see open drug and alcohol use, needles, no sanitation and fire hazards, but no ordinary park users.
This is a great example of irresponsible spending to further abuse the taxpayers. Some commenters said years ago the only options for Illinois residents were to bend over and take it or relocate to another state. Unfortunately, irresponsible spending has gotten worse in a relatively short period of time; therefore, those two options continue to stare us in the face.
if someone would take me public.
we can expose trillions of dollars
of stolen taxpayer money
Excellent video. Can Wirepoints, at some point in time help explain why, what I call the “core forty” states, basically all states other than the West Coast and New York/New England, can’t sustain them selves without Federal Assistance. Is it true that we can’t live without Coastal Federal tax revenue?
On top of State Level insolvency….
I agree it would be nice to understand the data behind the quick assertion (which I see regularly) that red states are more dependent on federal welfare. The gross numbers on federal payments directly to state and local governments are interesting. They show Virginia benefiting a ton, California losing a ton. Something like 16% of federal expenditures go directly to state and local governments. Moving to all federal payments from and to residents of various states is trickier. Some categories, like Medicaid and food stamps, are indicators of low income and “dependence” in a blunt sense; and other categories, like… Read more »
Page and ex-Chicago. What you are looking for is referred to as the balance of payments among states, which nets out all federal receipts from each state against all federal spending in a state. Two annual reports measure that — Rockefeller Institute and NY Comptroller. Both have shown that Illinois became a net “taker” state from the federal government since about 2019, reversing the traditional deficit IL had with the federal government. The most recent reports are for 2023 and just came out. I have not reviewed them closely yet but am doing so and will write about it. Both… Read more »
Rockefeller Institute works for SUNY, Mark. Government schools. There’s no reason to believe their lies, even when we agree with them.
Understood. And the traditional purpose of the NY Comptroller report has been to show that NY gets shortchanged. Still, they are the only regular reports on this that I am aware of, and it’s notable that IL turned into a net taker around 2019.
at the Springfield capital watering hole do they refer to him as JB or BJ Pritzker while yucking it up how they just totally screwed every taxpayer in the state!!! What the hell are the deep-deep duty secretes Martwick & the ghoul crew have on fat boy???
first 1/2 of this City Journal podcast does a good job pontificating on JBs national ambitions and why he strapped on the knee pads for the machine ghouls: (https://share.google/BGRiW69RV31QJZcOZ)
JB the Hutt does not socialize with plebes.
Two thoughts: Are “they” trying to keep the officers that haven’t already left? Are they seeking to raise the numerator in the fraction of pension debt to total debt to increase the amount paid from bankruptcy assets?
OR is this just the same game as we see with federal deficits that it’s more fair if we all fall together In the eventual collapse?
If there is ever a prolonged economic downturn these pension funds and retirees are f…..!
More likely the taxpayers will be f’ed. IL knows the bond market loves our crappy but high yield bonds. Because those bond buyers know well that IL will always screw over the taxpayers before they screw over them. Money in the bank. The day IL decides to not increase taxes to pay that debt, is the day it all falls apart. But that day will never come, there will always be enough residents to bleed dry, many people can’t simply leave, too many ties.
They can and will when they are living on the streets and have no job.
Illinois isn’t Gaza and people can leave the state. Simple as that.
We’ve been in a prolonged economic downturn since 2007. Times have changed since folks like you and I were young.
It seem the biggest “financial malfeasance”/SCAM regarding JB signing house & senate voting almost 100% “yes” on HB 3657 is apparently there is no (CAA) Actuarial Analysis for Chicago cop or fire pensions? Or at least none published. Instead there’s only a Pension Impact Note from 5/27/25 (https://cgfa.ilga.gov/Upload/104HB3657%20SA2.pdf) which states: HB 3657, as amended by SA 002, changes how the final average salary (FAS)is calculated for Tier II pension benefits in the Chicago Police and ChicagoFire pension funds. These changes would increase the funds’ respectiveactuarial liabilities, requiring an actuarial study to determine the full fiscal impact. An updated impact note will be… Read more »
As I’ve commented and asked before, not only am I confused where $11 billion cost estimate comes from but what $11 billion cost estimate for HB-3657 covers?
One assumes it covers:
Or probably, like everything else, from Springfield to city hall nobody knows, nobody cares.
Cost schmost. This is Illinois. They don’t care.
As this disaster unfolds, it astoundingly appears the only cost analysis is a City of Chicago actuarial analysis mentioned in several articles and by Austin Berg? But I search and search on line and can’t find any link to it? Is it a full (CAA) Actuarial Analysis or just some rough calculations?
Suggestion, it might be a good idea for WP, IPI or others to file FOIA with city to find out exactly what this analysis is, when it was completed, etc.
Unbelievably sickening.
A cynic might say that this is part of a larger strategy to force Chicago into bankruptcy. It’s apparent that the “two dozen billionaires, 290 centimillionaires and 120,500 millionaires” that live within the city limits can’t possibly support the continued existence of Chicago, even should they be willing to donate all their wealth. The fastest way to cause bankruptcy is to inflate debt (from all sources), and encourage out-migration with increased and novel taxes and reduced quality of life (safety, schools). A city with people too old, to poor or too discouraged to move cannot survive. And, perhaps, the last… Read more »
Clip is great. Someone should AI JB and Mark Glennon’s faces on it.
I would love that. Permission granted.
This bill was passed UNANIMOUSLY by Illinois Republicans. Not one dissenter, even though they could have taken a stand with no repercussions whatsoever. Why are we not talking about this?!
True. They took the view that if Chicago Dems want to do this to themselves, let them do that. Very bad approach, I think. They should have voted against it.
That’s a red herring argument – In a supermajority Leftist Democrat legislature, perverse votes have to occur by the minority party if they ever hope to get some crumbs. Gov Pritzker and Leftist Democrats were hellbent on this pension fraud to appease the public unions they are beholden to, so best to leverage it. The better question to ask – Why did not one supermajority Democrat vote against this pension fraud?
Was it supermajority leftist democrats that sponsored the pension amendment to the constitution? No that was republicans that had bipartisan support and the support of the Illinois electorate. Was it supermajority leftist democrats that added a 3% annual annuity increase to pensions? That was approved by a Democratic GA and signed by a Republican governor. Was it a supermajority leftist democrats that signed the Edgar pension ramp to kick the can on funding pensions? Nope. Was it supermajority leftist democrats that voted to add the right to collectively bargain to our constitution? Yes democrats voted for this bill but so… Read more »
Nice leadership there – deflecting from the latest pension fraud that is all on Pritzker and the supermajority Democrats. To talk of a few insignificant minority votes is desperation. Q.E.D.
Perhaps the (R)’s wanted to initiate a Chapter 9 filing quicker and get it over with.
I’m sure PPF is out having a celebratory drink right now. But the joke’s on him; I’m taking my ~$40,000 in state and local tax payments to Missouri in two weeks, and not bringing them back. Many more will follow.
So you sold your home to the next guy the will pay. Enjoy your life is MO. Illinois will be just fine without you.
You know the game Musical Chairs, right? Somebody always loses.
Can’t think of anyone who deserves to lose the game they’ve played for decades more than the public employees.
You’ve made your jealousy and hatred of public employees quite clear. Don’t be surprised when it’s you without the chair.
You mistake disgust for jealousy.
I think the public sector is great, they have given me all the incentive I need to burn rubber out of this state ASAP. Thank you for all of the greed that has destroyed the quality of living for so many. Better days are ahead of anyone who leaves. I will be giving the 1 finger salute as I cross the state line, me and tens of thousands of others.
I thought you already left. Now you’re talking about in the future giving the state the 1 finger salute? Just lying on here again as usual.
You are my favorite poster, no one gets more negatives than you. I like the fact that you speak your mind and truth. No one likes your comments because the truth hurts. Keep reminding everyone how big of suckers they are.
People certainly don’t like hearing the truth.
I gave the one finger salute to Illinois as I approached the Indiana border when I moved to the south last year. It felt great!!
My lifelong teacher friend from my Lake County suburb informed me that when she retired at age 56 others in town would make snarky comments about retiring so early. It is reasonable to infer that those commenting were either jealous or filled with resentment. Not sure it is helpful to fixate on what others think. In her case she worked and paid for every penny of Univ of Illinois. All on her own. High grades, high scores, just who we want in the teaching profession. Taught everyone from Yale bound graduates to special Ed kids with whom she worked miracles.… Read more »
You win an attaboy prize from me for giving the most thoughtful and polite statement I think I’ve ever read here and especially considering the polarity of political attacks on this very controversial topic. Kudos to you for rising intellectually above the screamers and writing your thoughts so respectfully!
Agreed James.
“And the political class doesn’t care – borrow or tax” They don’t care because the voters don’t care. The voters in Illinois and definitely in Chicago just want more of everything but don’t want to pay for it. Mayor BJ won his last election by telling people we need to get the money from the “evil other guys” so you can have the services you want. Mamdani is running the same campaign in NY city and it looks like he will win. You think the type of voter that chooses these types of candidates are worried about the city going… Read more »
Also, don’t have one of these pensions so there is nothing to celebrate for me. I do celebrate our representative republic and the voters of Illinois getting exactly what they keep voting for. Each state is a laboratory of democracy and Illinois continues to provide valuable data for all other states and the future of the Republic. We will get the government that we choose whether we like it or not.
and Illinois is surely a laboratory of a FAILED Democracy.
They haven’t failed at democracy but it has certainly failed at fiscal responsibility. They are giving the voters what they want, good and hard.
PPF – it is time to move on from it what the voters want narrative. Not because it is false, but it is of increasing irrelevance. Suppose for fantasy’s sake Chicago puts a NYU trained turnaround specialist in charge, and they somehow have some power of persuasion with the City Council. Even such a mythical person, although far better than the current leader, could make little headway, even in four or so years. The number are awful. And bankruptcy is no panacea. The City is so liened up in its borrowing instruments that bankruptcy doesn’t offer much flexibility. And histories… Read more »
It’s absolutely NOT the time to move on from holding voters accountable. None of this changes until the voters actually change their behavior and start rewarding responsible fiscal behavior. Once the voters decide it’s more important to cut spending rather than getting “equity”, we can finally start to improve our fiscal outlook.
Your observation is a truism that results from our constitutional system. It is helpful that you remind us of that. We aren’t “set up” to prevent voters from supporting candidates who align with those voters’ interests. Nor can we prevent advocacy groups from expressing partisan views which omit to tell “the whole truth.” Similarly, we can’t eliminate low-information voters or gerrymandering. Thus, we find ourselves stuck with guns and politicians like H. Clinton and Trump and Biden and unseemly confirmation fights about judges and cabinet secretaries. So, states like Illinois seem stuck with underfunded public pensions and truculent unions. And… Read more »
Out of curiosity I did a Google search on <hatred of government employees>. I think you’d find it instructive … perhaps interesting. A subset of the phenomenon is hatred of union employees. This antipathy seems to be a real thing. In some respects it’s probably similar to hatred of Trump or hatred of Biden or hatred of the Ivy League. Some of that rubs off on you even though you may not be a government worker or pensioner. Rather than deploring those who may hold antipathy for the public sector (e.g. the Fred Klonsky crowd) wouldn’t it be better to… Read more »
“Of course the Trump negotiating “style” may work in the same way as truculence in collective bargaining. I gotta say that bombast often “feels” good. But it doesn’t really contribute to the solution of long-term problems.” Completely agree. Unfortunately the voters have moved into a winner take all mentality and they reward politicians that double down on these efforts. Could you imagine a current politician running in a primary election and talking about “reaching across the aisle” to find common ground? Those days are apparently over. Republicans in Illinois constantly complain about gerrymandering in Illinois yet I don’t see anyone… Read more »
“The devil made me do it.” I’d be more inclined to blame it on the politicians than the voters. It’s a function of paying them too much and making it a career opportunity. That provides incentives for making – sometimes keeping – promises to voters as well as incentives for interest groups to fund politicians. Then media comes into play (not to mention lawyers) forcing candidates to grub for money. Even the sainted Lincoln made deals to advance the principles he espoused — and to escape Springfield! So near-term solution isn’t likely and long-term exacerbates the problems. AI will make… Read more »
I bet we’ll see a lot of connection and overlap between the participants in this pension SCAM and the list of names on Jeffrey Epstein’s list.
Putzger should ask the government to put the Bureau of Engraving and Printing (BEP), a part of the U.S. Department of the Treasury here in Illinois. This way he could print money as fast as he spends it
As much as you are right in every word you wrote, Pritzker is not the problem. The unions of public workers are. Working for the government administration is a duty. An individual not satisfied with a pay for public duty has the freedom to work for the private sector. Public workers do not need a union. However, we reached a point where public workers’ unions are, as Biden warned us in his farewell speech, “an oligarchy (…) of extreme wealth, power, and influence that literally threatens our entire democracy, our basic rights and freedoms, and a fair shot for everyone… Read more »
Pritzker has an obligation for stewardship – look at the list of folks begging him to veto this pension sweetner fraud put forth by the supermajority Leftist Democrats. It should have been politically easy for Pritzker to act like a good steward for once and veto, but he is not interested in good stewardship and went for the fraud to appease the public unions.
He was practical; unions are powerful. Even here, I got two votes down.
Practical, or the easy way of a coward? So much for leadership.
Leadership was a part of that equation.
“ It will all work out! It’s a good thing! The budget is balanced! Don’t be a carnival barker, Nazi, MAGA, facist etc. by questioning it!” says Governor Butterworth .
I bet they thought this was the right time to push through the latest bullet point in their commie agenda – lock it in before the Epstein records get released.
I hope they drop a bomb and release the Epstein records just before the 2026 midterms or the 2028 presidential election.
The fact Pritzker or Martwick or anyone who voted ‘Yes’ for the unearned and unneeded pension sweetner will even offer up a lie on funding shows how big of a fraud this all is.
If you want more of ‘Chuckles the Clown’ gov, he’ll be on the soon to be defunct CBS late night unfunny show – a perfect place for two Leftist Democrat losers. I’m certain PDJT will be blamed for Chuckles failures by cutting off the bailout monies to IL and Chicago.
Of course it makes no financial sense.
Another give away to the stooges in the Illinois public sector unions.
Also, now you know why the family booted his large arse out of the family business.
He has no common sense.
The same thing happened to William Clay Ford. They’d let him run the Detroit Lions though.
If there is no violation of the Safe Harbor Act how can this even be legal.
lol-18% funding levels at a time when the markets are at all time highs. these pension plans are a recession away from being bankrupt and requiring many billions in bailout funds from who knows where just to remain solvent.
They’re pinning their hope on a future president who’s a Democrat.
Who knows where?’ is the operative term. It’s certainly not coming from the current administration and the state is just as broke.