Chicago Public Schools' huge pension debt just got $1 billion deeper, new estimates show

The Chicago Tribune reports:

Less aggressive investment return estimates have carved an additional $1 billion hole in the severely underfunded pension system for Chicago teachers, reviving questions about how a retirement plan for tens of thousands of public workers can survive without additional money from taxpayers.

Consultants for the Chicago Teachers’ Pension Fund now conclude the system is about $11 billion in the red and faces an even steeper climb to comply with a state law that requires it to be 90 percent funded by 2059, financial documents show.


Schools and households won’t feel the worst pain of the impending pension payment spike for several years. Experts say that’s because the state-mandated payment plan pushes an enormous and growing burden onto future taxpayers.

Other distressed Chicago and Illinois public pension funds face similar pressures, with still no hint of where the money will come from to bring them into shape, raising the prospect of future tax hikes and budget cuts.

Government schools: a public bad.