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Record #: O2017-4839   
Type: Ordinance Status: Failed to Pass
Intro date: 6/28/2017 Current Controlling Legislative Body: Committee on Workforce Development and Audit
Final action:
Title: Amendment of Municipal Code Chapter 2-152 by adding new Article VI entitled "City Contributions to MEABF and LABF Ordinance"
Sponsors: Emanuel, Rahm
Topic: MUNICIPAL CODE AMENDMENTS - Title 2 - City Government & Administration - Ch. 152 Officers & Employees
Attachments: 1. O2017-4839.pdf
Related files: R2019-362


OFFICE OF THE MAYOR
CITY OF CHICAGO
RAHM EMANUEL
MAYOR
June 28,2017










TO THE HONORABLE, THE CITY COUNCIL OF THE CITY OF CHICAGO


Ladies and Gentlemen:

At the request of the Chief Financial Officer, I transmit herewith an ordinance amending the Municipal Code regarding funding for the MEABF and LABF.

Your favorable consideration of this ordinance will be appreciated.

Mayor


Very truly yours,
ORDINANCE

WHEREAS, the City of Chicago (the "City") is a home rule municipality under Article VII Section 6 of the 1970 Constitution ofthe State of Illinois; and

WHEREAS, the City as a home rule municipality may exercise any power and perform any function pertaining to its government and affairs, including the power to impose certain taxes; and

WHEREAS, pursuant to the Illinois Pension Code, 40 ILCS 5/ (the "Pension Code"), the City contributes to four retirement funds (the "Retirement Funds") which provide benefits upon retirement, death or disability to members of the Retirement Funds; and

WHEREAS, the Retirement Funds' membership consists primarily of current and former employees of the City and their beneficiaries; and

WHEREAS, two of the Retirement Funds are the Municipal Employees' Annuity and Benefit Fund of Chicago ("MEABF") and the Laborers' and Retirement Board Employees' Annuity and Benefit Fund of Chicago ("LABF"); and

WHEREAS, the City has contributed to MEABF and LABF the amounts required by the Pension Code, but such amounts have not been sufficient, when combined with employee contributions and investment returns, to offset increases in the liabilities of MEABF and LABF; and

WHEREAS, actuaries for MEABF and LABF have projected that, absent additional funding, MEABF and LABF will not have assets on hand to make payments to beneficiaries beginning in 2025 and 2027, respectively; and

WHEREAS, on May 23, 2016, the City reached agreement with certain of its labor unions regarding stabilization plans (the "Stabilization Plans") for each of MEABF a...

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