Civic Federation Says Chicago Pension Law Will Add Billions to City’s Long-Term Costs (Chicago, IL) – The Civic Federation is warning that changes to Illinois’ public safety pension laws will significantly increase the City of Chicago’s long-term financial obligations, citing updated figures included in the city’s newly released 2025 Annual Comprehensive Financial Report.
In a statement issued following the report’s release, Civic Federation President Joe Ferguson said updated actuarial valuations show the 2025 public safety pension legislation enacted by the Illinois General Assembly will require the city to contribute substantially more to its police and fire pension funds over the coming decades.
According to the Civic Federation, the legislation is projected to increase required city contributions to the Police and Fire pension systems by approximately $8.4 billion between 2025 and 2055, representing about $1.7 billion in present value.
“The City of Chicago’s 2025 Annual Comprehensive Financial Report confirms that the 2025 public safety pension legislation enacted by Illinois in August 2025 will substantially increase the City’s long-term pension costs,” Ferguson said.
The Civic Federation said it previously warned lawmakers that expanding pension benefits without identifying a dedicated funding source would place additional financial pressure on Chicago’s long-term budget.
“During the consideration of this legislation, the Civic Federation cautioned that increasing pension benefits without providing a dedicated funding source would create significant long-term fiscal pressures for the City,” Ferguson said. “We are now able to see those long-term impacts.”
Ferguson said the updated financial projections demonstrate the importance of evaluating the long-term costs of legislation that places new financial obligations on local governments.
He argued that future pension reforms and other policy initiatives should include sustainable funding plans to help cities and counties meet new obligations without placing added strain on future budgets or reducing funding for essential public services.
The Civic Federation is a nonpartisan government research organization that analyzes fiscal and budget issues affecting Illinois and local governments.
The City’s 2025 Annual Comprehensive Financial Report provides updated financial statements and long-term actuarial projections used to assess Chicago’s fiscal health and future obligations.
Civic Federation Says Chicago Pension Law Will Add Billions to City’s Long-Term Costs
