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Chicago City Wire

Thursday, November 14, 2024

Analysis: Firemen's Annuity and Benefit Fund of Chicago would go broke in five years without taxpayer subsidy

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Without members and taxpayers subsidizing its revenue, Firemen's Annuity and Benefit Fund of Chicago lost $231,205,620 in 2016, according to a Chicago City Wire analysis of the latest data reported to the Illinois Department of Insurance Pension Division.

The fund has $1,146,357,005 in total assets. If the funds annual losses were the same, it would run out of money in five years without these subsidies.

The fund earned $65,894,520 in investment income and other revenue in 2016. At the same time, it paid out $297,100,140 in expenses, according to the 2017 biennial report detailing the health of each of the states pension funds and retirement systems. The difference between the two shows the funds annual loss without subsidies.

Taxpayers added $156,158,391 to the funds revenue last year – an amount that has increased from $84,144,328 five years ago. Members contributed an additional $48,959,929 – $4,312,801 less than five years ago.

In all, subsidies amounted to $205,118,320 in 2016.

Firemen's Annuity and Benefit Fund of Chicago non-subsidy revenue over five years
YearTotal non-subsidy revenueTotal expensesOutcome without subsidies
2016$65,894,520$297,100,140-$231,205,620
2015$13,062,654$289,008,029-$275,945,375
2014$36,863,933$275,422,236-$238,558,303
2013$196,948,592$261,406,551-$64,457,959
2012$144,968,010$243,735,819-$98,767,809

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