Chicago alderman defends Tier 2 pension upgrade signed by governor
[August 05, 2025]
By Jim Talamonti | The Center Square
(The Center Square) – Chicago taxpayers will be expected to provide
larger payments for retired police and firefighters after Gov. J.B.
Pritzker signed a Tier 2 pension bill into law.
House Bill 3657 is one of 124 bills the governor signed last Friday. The
measure amends the Chicago Police and Chicago Firefighter Articles of
the Illinois Pension Code to enhance benefits for Tier 2 retirees.
Chicago Mayor Brandon Johnson said he expressed concerns about the bill
to state lawmakers.
“I am still very much concerned about the expectation and the demand of
taxpayers to be able to pay these pensions, particularly without any
progressive revenue attached to it,” Johnson said on July 23.
Chicago is facing an unfunded pension liability of $36 billion and a
budget deficit of more than $1 billion.
Chicago Alderman Nicholas Sposato was asked if progressive revenue was
the only way out of the city’s financial hole.
“Funny you say that, because I was talking to the budget director today.
This is going to be a very ugly-type deal. Basically, it’s going to be
‘pick your poison.’ Me for example, and I’m guessing most of the people
in my common-sense caucus will be with me, we don’t want to raise taxes.
We don’t want to cut jobs and services, but what are we going to do? How
are we going to do this?” Sposato said.

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Photo by
Nikhil Mistry on Unsplash

Sposato was a Chicago firefighter for 18 years. He did not express
opposition to Pritzker signing HB 3657.
“I’m certainly not an expert on this, but it’s about fairness. I do
appreciate the governor signing what’s fair. A lot of people don’t
feel that unions are fair. Why do Chicago guys make a hundred grand
a year and ... Iowa guys make 50 grand a year? It’s about fairness,
about two different tiers of pay levels,” Sposato told The Center
Square.
The 38th Ward alderman said firefighters have an expired contract
and haven’t had a raise in four years.
“So they’re still making what they were making four years ago. Once
this gets settled, you’re going to be seeing in the paper that
hundreds of millions of dollars goes to the firemen. Well, you know,
they haven’t had a raise in four years. What’s so unfair about
that?” Sposato asked.
HB 3657 took effect immediately after Pritzker signed it last
Friday.
Greg Bishop contributed to this story.
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