The goal is to avert a financial meltdown of retirement plans for municipal workers and laborers. The funds are a combined
City taxpayers already are on the hook for previously approved tax increases on water and phone bills, but Emanuel needs
Much of the effort Wednesday was aimed at getting pension fund trustees and union leaders to accept a city proposal to increase pension fund contributions for newly hired employees to 11.5 percent from 8.5 percent. The American Federation of State, County and Municipal Employees has balked at that proposal, saying it could result in the value of what employees pay into the fund being greater than what they got back upon retirement.
In the end, Chief Financial Officer
Earlier potential roadblocks were cleared Tuesday. Emanuel aides agreed to drop a provision that would have put one more mayoral appointee on the board of trustees for the
So now it becomes a matter of Emanuel being able to round up enough votes before lawmakers go home for the year on Thursday. With no
Even then, it's not clear whether Republican Gov.
To cover increased city taxpayer contributions, the
Under the bill, employees hired from 2011 to 2016 could opt to pay more into the pension fund. In exchange, they could retire at 65 instead of 67. The plan would not affect workers hired by the city before 2011 or those who have already retired. Those groups receive higher retirement benefits under state law.
Emanuel's plan also would require aldermen elected after it goes into effect to work just as long as all other city workers before getting full pension benefits. Current aldermen are able to reach full benefits in just 20 years, instead of the 30 required of city workers.
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