Illinois cannot assume the unfunded pension liabilities of Chicago and other municipalities across the state because its credit rating would be reduced to junk status if it did, Gov. J.B. Pritzker said Monday.
But the state is still looking for ways to help offset municipalities’ soaring pension debt and he left open the possibility of a consolidation in which the local governments could pool their money for better investment returns.
Mayor Lori Lightfoot reportedly wants the state to consolidate Chicago’s pension funds with more than 650 suburban and downstate police and firefighter pension funds, according to a recent Crain’s Chicago Business story.
