Taxpayers on hook for city employee pensions

For every dollar the city of Chicago collects in property taxes, about 47 cents goes toward pensions -- for police officers, firefighters, garbage collectors and other city workers.

The amount of money in those funds is growing, but not as fast as the amount needed for current and future pensions.

The amount of money in those funds is growing, but not as fast as the amount needed for current and future pensions.

These pension funds are invested in a variety of ways. How well those investments perform matters to taxpayers, as well as future retirees: If the investments fare poorly, taxpayers could end up paying more in taxes.

These pension funds are invested in a variety of ways. How well those investments perform matters to taxpayers, as well as future retirees: If the investments fare poorly, taxpayers could end up paying more in taxes.

Three of the four city pension funds have invested in a "high-risk/high-return'' real estate company co-owned by Mayor Daley's nephew Robert G. Vanecko. The only one that didn't invest was the Chicago firefighters pension plan.

Vanecko's company also got investments from the Chicago Teachers Pension Fund and the CTA Employees Retirement Plan.

In a potential sign of trouble down the road, each of the pension funds -- like most public pensions these days -- faces a widening gap between its assets and the amount of money it expects to ultimately have to pay retirees.

Their investments are growing, but not as fast as the anticipated future pension payouts.

The CTA fund is in the worst shape of any public pension plan in Illinois, according to a recent state report.