SPRINGFIELD — A leading credit rating agency has called legislation to overhaul to Chicago's pension funds a "positive development" but says it won't solve all the city's problems.
The analysis by Moody's Investor Service was released Monday. It says the proposal is "modestly credit positive" because it tackles the city's massive and growing underfunded pension liabilities.
Mayor Rahm Emanuel says he has agreement with city unions to cut a $20 billion deficit in two pension accounts over 40 years. He says it will happen in part through a massive, five-year increase in property taxes. The state General Assembly must approve the changes.
The report says that even with reform, pensions will continue to weigh heavily on the city's financial problems.
The city's credit rating was downgraded by the agency last month.