Chicago’s pension debt soars to $37 billion, at just 26% funded

(The Center Square) – Taxpayers in the city of Chicago now owe more than $37 billion in unpaid pension costs after debts soared by at least $1.8 billion over the last 12 months.

Data outlined in the city’s annual comprehensive financial report further highlights that the city’s four employee pension funds representing police officers, firefighters, municipal employees and laborers jumped by 5% in 2023.

While Chicago Mayor Brandon Johnson recently boasted of the city now being on the right track in terms of getting the city’s pension system in order, state Sen. Craig Wilcox, R-McHenry, sees things entirely different.

“Unfortunately, everything that the General Assembly has attempted, whether it was consolidation of the police and fire pensions, it didn't come without pension enhancements,” Wilcox told The Center Square.

With the city’s taxpayers facing a $2.74 billion pension bill in 2025 and the funds structured to pay pensions to the police officers, firefighters and municipal workers funded at only roughly 22% of promised benefits, Wilcox frets the worst may still be yet to come unless the right steps are taken.

“You start cutting all of those new growth programs that they started during COVID or a new growth program that they thought was a good idea,” he said. “What I'm talking about is zero based budgeting where you start from zero and build up your true needs and then you add on top your wants and desires and you draw the line where the taxpayers can handle it. Unfortunately, that's not the way the majority party goes.”

Overall, Chicago’s four pension funds have a combined funded level of 26%, compared to other large public pension funds that total around 70%.