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Chicago Seeks Tax Hike to Avert Insolvency for Pension Fund

  • Emanuel plans to raise utility levy for municipal pension fund
  • Without fix, municipal fund will run out of money in 2025
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Chicago Mayor Rahm Emanuel is seeking higher utility taxes to keep the city’s largest pension fund from running out of money and set all four retirement plans on a path to solvency.

The city wants to raise the levies on water and sewer bills to shore up the Municipal Employees’ Annuity and Benefit Fund of Chicago, the most underfunded of the four pensions, Emanuel said Wednesday at an investor conference in Chicago. Without changes, the pension that serves more than 70,000 workers and retirees is on track to run out of money within a decade.