Emanuel pension plan: Higher taxes, lower benefits

Mayor Rahm Emanuel wants to raise Chicago property taxes and cut city retirement benefits, to bail Chicago out of its pension debt crisis.

Not all of the city’s labor unions support a cut in their members’ retirement benefits.

The owner of a typical $250,000 home would pay another $250 a year in taxes within five years; and city employees would be required to pay 12 percent of their paychecks, instead of 8 ½ percent, to fund their retirement plans.

“The Mayor has very few options left in terms of saving these pension funds,” says Lawrence Msall of the Civic Federation.

The city is in the midst of critical times in which most pension funds are in danger of collapsing.

“It is a real compromise.  It shares the pain between the taxpayers and between the pensioneers who are going to get a little less accrued benefit.  And the employees are going to have to pay a little more,” Msall tells WGN.  “But we’re still going to be able to operate our government under a reasonable tax structure.”

The mayor’s plan — when it’s written down — will need the approval of Illinois lawmakers.

11 comments

  • john

    Suggestion: everyone have their DNA on file to match babies being born with "father unknown" birth certificates. Match the baby to the father, and have the father take financial care of their children. This will put the financial burden on the father, not taxpayers

  • Ismael

    Why do people in Chicago keep electing Democrats when all They do is Tax, Tax ,Tax, That's all they do. If a politician takes money out of my pocket He won't be there long but in Chicago They have lifetime jobs. It doesn't make sense. Throw these bums out of office.

  • Chas

    by george I thin I may have the answer(s). No charge, cannot say the same about Chicago’s politicians digging deeper in their own taxpayers pockets.
    1.) Re draw the wards to say New Yorks demographics. Hmm half the wards we have now with half the alderman = money saved.
    2.) Change the “life time politicians” 8 years max in any voter appointed position. Hmm
    this equals to obscene retirement packages which = money saved.
    3.) Hold all these vendors who have traffic revenue enforcement contracts (parking metets, stop light & speed cameras contracts) accountable for the hundreds if not thousands of parking violations given to the tax payers for cars not moving getting speeding tickets, ect ect.
    4.)Make all vendors doing business with the city 8 years max on all business deals even if they have to resubmit annual bids. Hmm more diversity = more money saved, make them earn the contracts.
    5). Sub out waste collection & snow removal. With a city this big I am confident there are business that cam keep lake shore drive and the side streets open along with money saved.
    I could go on & on but I like the city don’t give mych for free. LOL

  • Scammed

    I think these changes the democrats have made to the US in the last 7 years are great!! Can't wait to see what else they have in store for the world.

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