Just default now: Judge rules against Chicago Park District pension reform

Indian Boundary Park,

Chicago's North Side

Get it over with, Chicago. Just default on your pensions. Whether you like it or not, these generous rewards to public-sector unions for their campaign contributions to Democratic politicians, are unaffordable.

From the Chicago Tribune:

Chicago taxpayers, prepare for another kick in the teeth. In fact, it might be a good time to grow fond of the toothless grin. Another recent court decision will put taxpayers on the hook for additional city pension debts. Yes, even more than before.

A circuit court judge in March struck down a 2014 state law that eased pressure on the pension fund of Chicago Park District retirees. The law had increased Park District employees' own contributions to the fund, increased their retirement-eligible age, reduced their annual cost-of-living increases and reduced duty disability benefits. But those changes will be rolled back, due to the ruling.

That means the Park District - you, taxpayers - will have to come up with reimbursements for workers' higher contributions, plus interest. Going forward the district will have to figure out how to stabilize the retirement fund without those cost-saving changes. Chicago's pension funds - for municipal workers and laborers, teachers, police and firefighters, and now Park District employees - face serious unfunded liabilities. The Civic Federation estimates the Park District fund has about 39 percent of what it needs to make future benefits payments.

The judge's ruling came on top of a recent analysis of the Chicago Public Schools teacher pension fund that showed taxpayers will owe another $1 billion to shore up that retirement account, bringing that unfunded liability to $11 billion.

Meanwhile, people continue to flee the Chicago area. No one wants to be the last man standing in the Chicago pension pyramid scheme.