Pension Cuts Destabilize City Neighborhoods: Report
Retired city employees "form the stable core of their neighborhoods," and pension "cuts will negatively impact not only their quality of life but entire communities," says a new report from We Are One Chicago coalition member the Chicago Teachers Union.
The Chicago Sun-Times reports:
A new study released by the CTU on Monday said that if the same pension reform, known as Senate Bill 1, is applied in the city, it would slash the pensions of city public workers, harm retirees and negatively impact the city’s economy.
The study also claims that black, middle-class city workers will be the hardest hit by reductions in retirement benefits. ...
In the new report, the CTU said retired teachers could see an average cut of $700 a month if SB 1-like provisions are passed for the teacher’s fund.
It also claims that black, middle-class, city workers would be the hardest hit and that the Beverly and Morgan Park neighborhoods would see the biggest impact of pension cuts.
“Public service jobs have been a major path to stable, middle-class employment and retirement for people of color in Chicago when other doors were slammed shut,” the report said.
The cuts would affect businesses and the economy because retirees would have less money to spend, the report said. The CTU said the proposed cuts to Chicago retirees would amount to about $270 million slashed from retirement income over five years.
View or download the complete report below.