Illinois' House and Senate have approved a bill that would increase employee contributions to two Chicago city pension systems and which will cut future cost-of-living increases for retirees.
The legislation will now go to Illinois Governor Pat Quinn for his signature.
The bill is an attempt to deal with a pension system that has a shortfall of around $20B, with some funds on course to run out of money withing a decade.
However, attempts to include tax increases to fund the pension systems were taken out the final legislation. In addition, Chicago Mayor Rahm Emanuel needs to deal with an increase of over $600M in annual contributions to the city's police and fire pension funds that's due to begin next year.ETFs: MUB, HYD, BAB, PZA, MUNI, TFI, ITM, MLN, HYMB, BABZ, XMPT, BABS, SHM, SUB, PRB, SMB, PVI, SMMU, MUAF, MUAE, MUAD, MUAG, VRD, MUAC, GMMB, RVNU