- The city of Chicago has filed suit against the Illinois state Comptroller’s office and pension boards for its police officers and other city workers, accusing the pension funds and the comptroller of wrongly intercepting state grant funds otherwise owed to the city because the pension funds say the city has shorted its pension contributions.
On May 1, lawyers for City Hall filed a complaint in Cook County Circuit Court, asking a judge to slap an injunction on the comptroller’s office and order the state release the money.
[...]
According to the lawsuit, the comptroller’s actions followed notices of “final determination” submitted in March and April by three pension funds which manage retirement funds for Chicago city workers, including police officers. According to the complaint, city believes the pension funds have told the comptroller City Hall has shorted its contributions to the three pension funds by a total of about $23.1 million, which could trigger an embargo on state funds to the city.
Under state law, the comptroller is required to intercept and hold any payments being made by the state to a municipality, if one of the municipality’s pension funds reports the local government has failed to fund its pensions at the levels set by law.
Rahm's people accused of shorting pension funds? Who would ever believe that? Oh yeah - everybody.
But can Mendoza prove it in court? Go read it all. It's interesting to say the least. Especially in light of this article:
But can Mendoza prove it in court? Go read it all. It's interesting to say the least. Especially in light of this article:
- Mayor-elect Lori Lightfoot could need to come up with more than $200 million beyond what Mayor Rahm Emanuel previously estimated in the 2020 city budget to cover higher pension payments and costs previously covered with expensive borrowing, Emanuel’s chief financial officer said Wednesday.
That would push the budget shortfall Lightfoot faces north of $700 million, higher-than-expected costs the incoming mayor didn’t know about until recently.
The city’s pension investments performed badly at the end of 2018 as the stock market took a dive, Chief Financial Officer Carole Brown said. That led to a negative rate of return that will force the Lightfoot administration to come up with perhaps an additional $100 million as the city shifts to actuarially based pension payments in 2020, Brown said.
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