Johnson says Tier 2 enhancement for Chicago public safety retirees
'incomplete'
[July 24, 2025]
By Greg Bishop | The Center Square
(The Center Square) – A measure on the governor’s desk to increase
pension benefits for Tier 2 public safety retirees in Chicago is
incomplete, according to Chicago Mayor Brandon Johnson.
Chicago faces a $36 billion unfunded pension liability. Despite that, a
measure legislators approved would enhance benefits for Tier 2 public
safety pensioners.
Tier 2 public employee retiree benefits were enacted by the Illinois
General Assembly for any new employee hired after 2011. The benefits
package was reduced from Tier 1 employees as a way to shore up unfunded
liabilities within pension plans.
Gov. J.B. Pritzker said Tuesday he’s still evaluating the measure to
enhance Chicago Tier 2 benefits for first responders legislators
approved during spring session.
“One thing to consider is of course, finances for the city of Chicago,”
Pritzker said at an unrelated news conference. “How will they pay for
it? Another thing to consider is these are our policemen, these are our
first responders, and we want to make sure that they are well taken care
of as the firefighters had been previously. So all of that’s part of the
consideration as I look at the bill.”
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Asked about the measure at a separate news conference, Johnson said
it will be difficult to implement if Pritzker signs it.
“Absent progressive revenue, it’s impossible to maintain that
expectation, so the best way to put it is this is incomplete,”
Johnson said.
Asked explicitly if Pritzker should veto the measure, Johnson
reiterated his position.
“I’m saying that without progressive revenue, there is not a pathway
that allows us to maintain these obligations,” Johnson said.
The city faces a billion dollar budget deficit for the next fiscal
year starting in January.
Statewide, Pritzker said the state budget that started July 1,
includes $75 million to pay for possible shortfalls of Tier 2
retirees that may not have benefits equivalent to Social Security,
but a permanent fix for that issue has not advanced.
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