Johnson, Pritzker trade blame over $11B pension bill

CHICAGO – Chicago Mayor Brandon Johnson and Gov. J.B. Pritzker are blaming each other after FOX 32 Chicago revealed the governor was warned the city could be on the hook for $11 billion under a controversial police and fire pension bill.

What we know:

Both sides accuse the other of mishandling the legislation, which boosts pensions for newer Chicago police officers and firefighters at a projected cost of $11 billion to taxpayers over the next 30 years.

Pritzker signed the bill in early August and told reporters Johnson never reached out to ask for a veto.

“The mayor never once called me or, as far as I know, any legislators to oppose that bill or to ask for any changes in that bill,” Pritzker said.

But an internal memo obtained by FOX 32 showed Johnson’s Chief Financial Officer Jill Jaworski warned top Pritzker aide Andy Manar that the measure would cost the city $11 billion, with no funding mechanism, and would deplete the police and fire pension funds to the point of insolvency.

In a statement Wednesday, Johnson’s office said the memo, “corroborates what we said all along: that both the legislators and the governor’s office were aware of our concerns. We raised these concerns both publicly while testifying on the potential impact of this bill and privately.”

Pritzker’s office responded Wednesday:

“This bill was passed with a supermajority in the legislature and we are unaware of this input ever being given to legislative leaders. The governor’s office always appreciates this kind of input earlier in the legislative process.”

The bill has also drawn criticism from watchdog groups including the Better Government Association and the Civic Federation.

It was sponsored by state Sen. Robert Martwick, D-Chicago, who represents the Northwest Side. Martwick said the legislation was necessary to bring so-called Tier 2 police and fire employees — those hired after 2011 — in line with their counterparts across the state.

He also said the measure was needed to satisfy “safe harbor” provisions, an IRS rule requiring government retirement benefits to be equal to or greater than Social Security.

What’s next:

Martwick acknowledged the financial impact but argued inaction would have been more costly.

“Those numbers exist whether or not we pass the legislation. Tier 2 is insufficient, according to the federal government, and it needs to be fixed,” he said.

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