Chicago's four pension funds hold about 27 cents for every dollar they owe. Change how the city pays and invests, and see what it costs and when they reach 90%.
How much the city pays
Reach the goal by
Pool the four funds' investments
Extra money every year
$0$0$1B a year
Keep the city's extra "advance" payment
A one-time deposit in 2027
Borrow now with a pension bond
What the investments earn
A market crash in 2028 (−25%)
Cut benefits?
Not an option here: the Illinois Constitution protects the benefits of current workers and retirees, and the state Supreme Court struck down Chicago's attempt in 2016.
Funded over time
Assets as a share of what's owed, all four city funds together. State law requires 90% by 2055 for police and fire and 2058 for municipal workers and laborers.
State law, funds' assumed returnsYour plan
What the city pays each year
City contributions to the four funds, plus pension bond payments if you borrow. Nominal dollars.
State lawYour planBond payments
Most of each payment is interest
What paying sooner saves
Money paid in sooner stays invested, so the city needs fewer dollars later. Today's dollars, 2026 to 2070.