“These individual municipal pension funds have cost Illinois taxpayers millions and millions of dollars in below-average investment returns and unnecessary administrative costs,” said Costa Howard, who serves on the Governor’s Property Tax Reform Task Force. “When these local police and fire pension funds are badly managed, property owners wind up footing the bill. Consolidation into two professionally managed systems will ease the burden on homeowners, ease the squeeze on municipal governments, and provide security to retired first responders.”
Costa Howard was a co-sponsor of Senate Bill 1300, which calls for consolidation of local fire and police pension systems over the next 30 months. It’s estimated that the new system will generate $820 million to $2.5 billion in increased investment returns within the first five years.
The pension system reform initiative was supported by the Illinois Municipal League, Associated Fire Fighters of Illinois, and Illinois Fraternal Order of Police.
“Consolidating the assets of the more than 650 downstate public safety pension funds throughout Illinois will help provide stronger investment returns for active and retired public safety employees and reduce redundant administrative costs on Illinois’ taxpayers,” said Illinois Municipal League Executive Director Brad Cole. “This is a good first step forward on the complicated and comprehensive issue of pension reform.”