By: Jim McNamee, President IPPFA
IPPFA supports legislation aimed at expanding investment authority of local Police and Fire Pension Boards. The current investment rules, just as the market changes, need to be updated. HB 5571 is a bill that was drafted with input from our investment managers and DOI. This bill clarifies language on investment authority. Police and Fire Pension Fund Trustees have proven, when given the tools, they meet or exceed their investment benchmarks. The Anderson Economic study reflects Article 3 and 4 Funds’ exemplary investment performance. Other proposals from the Illinois Municipal League (“IML”), like consolidation, will increase unfunded liabilities due to transition costs and disruption of our retirement systems. The COGFA study shows consolidation is nothing more than a “pie in the sky” claim. The IML’s flimsy plan is not supported by any credible experts and fails under even the most superficial of challenges. Taxpayers will pay more under the IML plan. “Consolidation” is about who controls Police Officers’ and Firefighters’ retirement money. It is not about solid fiscal policy, ethical reform, or even doing the right thing – it is about power. Police Officers and Firefighters have always been good stewards of their retirement systems. We should trust them to continue their excellent and scandal free track record.