Pensions

Illinois Gov. JB Pritzker on Friday signed pension legislation that will put Chicago on the hook for an additional $60 million in its fiscal 2026 budget.

PREPA says it is short on money and Genera's parent company has said it may go out of business.

A bankrupt city's only asset is mired in its history of corruption and a statewide fight over utilities privatization.

Pension analysts are calling for higher contributions even as financial conditions improve.

Cook County released its $9.89 billion executive budget recommendation, with officials saying it includes no new taxes or layoffs.

Fitch upgraded Chicago's issuer default rating and GO debt rating to A-minus from BBB-plus and the city's sales tax securitization bonds to AAA from AA-plus.

While it may cost the city more to sell its bonds, the negative outlook could increase market participation, one analyst said.

Congress has taken no significant action on bills that would stop the depletion of the United States Virgin Islands' government pension system for 21 months.

Moody's Investors Service bumped Chicago's outlook to positive from stable, while affirming the city's Baa3 issuer and general obligation bond ratings.

For the three-month period ending June 30, the fund's investments returned about 3.08%.

The Senate proclamation says Shields left behind "an indelible mark on the public finance industry."

"We believe pensions have an elevated probability of stressing the state and local governments' budgets even as Illinois has made supplemental contributions above the statutorily required amounts," S&P Global Ratings analyst Joseph Vodziak said.

The demographics of the public-sector workforce are likely to change, even as many state and local governments consider increasing wages and improving other benefits to attract and retain employees.

Strong 2021 contribution levels continue a trend that began with pension reforms made in the wake of the Great Recession.

Chicago is leading the pack in pension fund problems.

New Jersey and Illinois have the lowest state bond ratings. But all three states have been ramping up pension contributions, according to S&P Global Ratings.

S&P Global Ratings says that without funding reform, New Jersey's pension system may continue to negatively impact the state's credit outlook for decades.

Mayor Jorge Elorza said the reworked bond proposal was better than the larger one put before the state Legislature last year.

The previously unrated Santa Cruz Metropolitan Transit District will be the first transit agency to price debt to cover pension liabilities when it hits the market Wednesday.

Having earnestly settled with every major constituency, it is time for the Board to do the right thing by abandoning unnecessary pension cuts and freezes.