SPRINGFIELD, Ill. – To help ease the substantial property tax burden on middle-class families, state Rep. Jennifer Gong-Gershowitz, D-Glenview, supported a pension consolidation measure that reduces 650 pension funds to two.
“Local governments must pay fees for the management of their individual police and fire pensions which inflates property taxes for families and seniors,” Gong-Gershowitz said. “By consolidating hundreds of funds, Illinois can reduce the costs of government operations, increase buying power, and ultimately use tax dollars more judiciously.”
Currently, local governments must pay consultants and financial advisors to manage each of their pension funds, leading homeowners to cover those costs through their property taxes. Gong-Gershowitz supported Senate Bill 1300 which consolidates 650 local police and fire pension funds into two systems, one for police and one for fire. By combining the assets and management of these funds, the costs of their administration and management will be reduced, leading to property tax relief as well as greater returns on investment. Over the next 20 years, consolidation is estimated to result in between $3.6 billion and $12.7 billion in increased investment returns.
“Stabilizing our state’s financial footing is critical to empowering taxpayers and strengthening the economy,” Gong-Gershowitz said. “Our families expect their dollars to be used in the wisest, most efficient manner and this bill is a step towards doing so while putting downward pressure on property taxes over the long-term.”
Visit Rep. Jennifer Gong-Gershowitz’s website
265-S Stratton Office Building
Springfield, IL 62706
1812 Waukegan Road
Glenview, IL 60025