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Chicago City Wire

Thursday, November 14, 2024

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

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Without members and taxpayers subsidizing its revenue, the Firemen's Annuity and Benefit Fund of Chicago would have lost $385,941,794 in 2018, according to a Chicago City Wire analysis of the latest data reported to the Illinois Department of Insurance Pension Division.

The fund has $1,135,317,292 in total assets. If the fund’s annual losses stay the same, it would run out of money in three years without these subsidies.

The fund lost $52,134,525 in investment income and other revenue in 2018. At the same time, it paid out $333,807,269 in expenses, according to the 2019 biennial report detailing the health of each of the state’s pension funds and retirement systems. The difference between the two shows the fund’s annual loss without subsidies.

Taxpayers added $249,684,038 to the fund’s revenue last year – an amount that has increased from $109,805,454 five years ago. Members contributed an additional $45,894,781 – $2,161,612 less than five years ago.

In all, subsidies amounted to $295,578,819 in 2018.

Firemen's Annuity and Benefit Fund of Chicago non-subsidy revenue over five years
YearTotal non-subsidy revenueTotal expensesOutcome without subsidies
2018-$52,134,525$333,807,269-$385,941,794
2017$146,086,616$314,763,982-$168,677,366
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

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