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Alderman urges actuarial pension plan as council hears details of shortfalls
Summary
An alderman told the council the police and fire pension funds are underfunded and asked the administration for an actuarially certified pension-funding plan by July 31; the mayor said the city has made above-minimum contributions during his tenure and that 60% of the tax levy is directed to pensions.
An alderman called on the Blue Island administration to deliver an actuarially certified plan to address police, fire and retiree-benefit shortfalls, saying the city's pension funds are underfunded and require immediate attention.
In a prepared statement the alderman reported that, as of Dec. 31, 2024, the police pension was about 38% funded and the firefighters’ pension about 30% funded, with a combined unfunded liability cited at roughly $55 million. The alderman said the city would need sustained annual contributions well in excess of $7 million to reach a 90% funding target by 2040 and urged the council to direct administration to present a certified pension funding plan by July 31.
Mayor (Speaker 1) countered that the city engages independent actuaries (Foster & Foster) and that the city has made contributions above the state minimum in recent years. He reiterated that pension levy revenue goes directly to pension funds and cannot be diverted to other purposes such as streets, and said the city has been consistently contributing above minimum amounts during his time in office.
Council discussion included requests for a more detailed fiscal briefing and for administration and council collaboration on long-term spending priorities. The alderman asked the council to pause nonessential projects until a clear funding plan is available; the mayor said more information and follow-up discussion would be appropriate.
