The underfunded municipal pension system is the one of the most pressing fiscal issue facing our city today. Failing to address it will lead to bankruptcy for the municipal employee funds and perhaps for the city itself.

John Arena applauds Governor Pat Quinn for signing Senate Bill 3538, which begins the crucial dialogue we need to have to fix this problem.

However, John understands further steps must be taken. To solve the pension crisis in our city, John believes we must:

• Commit to smart benefit reduction. We need to reduce benefits not only for future employees but for current employees not yet vested in their pensions. The truth is that it is nearly impossible to avoid bankruptcy without including current employees. The numbers just don’t add up. SB 3538 is a good start, with its proposition to double the length of time over which the average salary is computed. The bill also places a much-needed cap on the highest salary that can be used for calculating pension benefits.
• Raise the age for full pension eligibility.  John applauds the provision in SB 3538 that would raise the age for full eligibility to 55 years. Though he says that ceiling might have to be raised even higher in the future, he insists that allowances be made for first responders.
• End pension double-dipping.  As a small business owner, John knows that the practice of collecting two separate pensions from one employer is virtually unheard of in the private sector. John’s plan calls for merging pension benefits in situations where someone has worked at various levels of government.
• Make city contributions to pension funds in a more realistic way. John believes the city should operate under the same mathematical rules the rest of us do when we balance our checkbooks or work toward savings goals. Under John’s plan, Chicago would end the practice of making contributions arbitrarily and create a schedule based upon actual expected payouts and current life expectancy.  
• Approach the pension crisis with honesty and openness. John’s entire campaign is based on the notion that we must have an open dialogue or we’ll never reach the consensus necessary for true change. Nowhere is that more true than in the contentious issue of the budget. Already, some are trying to scare the public into inaction with claims that SB 3538 will double our property taxes, a move that won’t be necessary if we institute John’s plan. He knows we must not allow the pension crisis become an excuse to demonize city workers or their unions. John understands that our problems will be solved by working with municipal employees, not by denouncing them.