While many are familiar with Detroit’s pension crisis, few realize Chicago’s is worse. Funds for city workers are $19.5B short of meeting obligations – a gap of more than $7,000 per resident. For firefighters that means for every $1 owed in benefits, there's only 25 cents in the bank. So with a system that’s only 35% funded, how can Chicago maintain its reputation as a “city that works?” Join us Tuesday at 7:30pm ET.
On this episode of The Stream, we'll speak to:
Anthony (Tony) Martin
Secretary – The Fireman’s Annuity & Benefit Fund of Chicago
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Chicago's four major pension programs are facing a funding crisis. The pension systems for police, firefighters, laborers and municipal workers were short by a $19.5 billion at the end of 2012. Add the $8 billion shortage the city's teachers are facing and Chicago is in the hole more than $27 million. Collectively, Chicago's public employee pensions were only 36 percent funded at the end of 2012. In other words, for every dollar the city owes in benefits, it has just 36 cents in the bank. For firefighters it's even worse with only 25 cents to every dollar.