Chicago Lends Pension Cash to Stop Asset Sale From Tax Delay

Chicago is facing a cash flow issue due to a delay in property tax collections caused by a computer problem. To prevent its underfunded pension systems from having to sell assets to cover retirement checks, the city is stepping in to provide a short-term loan. This measure aims to ensure that the pension funds can continue to make payments to retirees while they wait for the delayed property tax revenue to be collected. The article highlights the financial challenges Chicago is navigating, as its pension systems are underfunded and rely on timely tax revenue to meet their obligations. By lending cash to the pension funds, the city is attempting to avoid the need for asset sales, which could further strain the pension system's finances. The article underscores the complex financial landscape Chicago faces in managing its pension liabilities and the importance of maintaining stable cash flow to support retirees.