Chicago Mayor Rahm Emanuel has a new proposal to address the city's underfunded Laborers Pension Fund.
The plan, reached with Laborers Locals 1001 and 1092, comes after the Illinois Supreme Court ruled against Chicago's 2014 overhaul of its Municipal and Laborers pension funds in March. The state's high court said the measure -- which reduced cost-of-living increases for retirees and required city of Chicago workers to pay more into their pension funds -- violated the Illinois Constitution's pension clause, which prevents contractual pension benefits from being reduced.
The latest proposal would cover just the Laborers Pension Fund. For workers hired after January 1, 2017, they would have to contribute 11.5 percent of their salary toward their pension and could not retire before age 65.
Workers hired after January 1, 2011 could also choose that option, or they could defer retirement until age 67 and contribute 8.5 percent of their salary toward their pension.
Employee contributions would have increased 29 percent under the pension reform measure struck down by the Illinois Supreme Court.
The city says the Laborers Pension Fund will get the $40 million in annual revenue produced from the 2014 telephone tax hike, which was supposed to go toward both the Municipal and Laborers pension funds.
For the next five years, the city would also see its payments into the Laborers Pension Fund go up at least 30 percent a year.