Twisted Priorities Chicago Police Pension Plan

Abstract

The Chicago Policemen’s Annuity and Benefit Fund (PABF) - commonly referred to as the “Chicago Police Pension Fund” is one of the worst funded public pension plans in the U.S. today and in U.S. history. Its funding ratio as of today is only 23%. It is also so damaged by a total lack of transparency that it puts the interest of Wall Street & Chicago Investment Managers over its own current and retired officers. PABF has hidden $10s of millions in investment fees, while denying payment for a disabled officer’s wheelchair. Alternative investments in public pensions which include hedge funds, private equity and real estate have been coming under increased scrutiny for their valuation, performance numbers and excessive management fees, as illustrated in an ongoing FBI investigation in Pennsylvania. Unfortunately, the PABF is loaded with these same high-risk, high fee alternative assets

Keywords: Pension, Retirement, Private Equity,

JEL Classification: H55