“The legislation is credit negative for the city of Chicago,” said the advisory from Moody’s Investors Service, “because it will cause the city’s reported unfunded pension liabilities, and thus its annual contribution requirements, to rise.”
Here’s a breakdown of the issues facing the $62 billion pension fund for teachers. They include a botched figure for financial performance and FBI questions and subpoenas.
A West Coast pension plan consolidated three fixed-income mandates with Western Asset Management and approved a real estate commitment at its board meeting last week.