Chicago Splits Pension Payments in Hopes of Improving Cash Flow

Chicago splits pension payments in hopes of Improving cash flow

(The Center Square) – Illinois State Rep. Dan Ugaste, R-Saint Charles, worries Chicago’s newfound plan to divide annual advance supplemental payments for its underfunded pensions into at least two installments could lead to just more mismanagement.

Council demands to know why Johnson is delaying full payment of $260M pension advance – Chicago Sun-Times

The alternative city budget muscled through the City Council over Mayor Brandon Johnson’s objections required the city to make the full $260 million advance pension payment to stave off another costly reduction in Chicago’s bond rating. Late last week, the Johnson administration ignored that mandate and made a half-payment of $130 million.

Council demands to know why Johnson is delaying full payment of $260M pension advance

The payment was a pivotal part of the alternative city budget approved over Mayor Brandon Johnson's objections. But he chose to make it in two installments, citing cash flow concerns tied to delayed property tax payments from Cook County.