Emanuel Proposes New Tax to Shore Up Chicago Pensions

Mayor Rahm Emanuel has pitched a new tax on Chicago water and sewer bills to help fund the largest of the city's employee pension funds.
 
He proposed the idea Wednesday in a speech to investors, saying it'd raise an estimated $230 million annually once it's fully in place. The money will shore up the municipal workers' retirement system which has $18.6 billion in unfunded liability.
 
The tax would be phased in over four years, raising the average homeowners' bill by $50 each year until it reaches $200 in the fourth year.
 
The tax requires City Council approval. However, some aldermen objected, saying homeowners have already been faced with a property tax hike.  
 
The municipal retirement system covers about 71,000 current and former city workers.