(Bloomberg) -- The pension-funding crisis undermining thestability of Illinois and Chicago is rippling through hundreds ofsmaller governments, squeezing budgets as officials prop upteetering police and fire retirement funds.

The eastern Illinois border city of Danville has reduced itsfirefighter ranks by 27 percent in five years to lower retirementcosts. The tiny Chicago suburb of Stone Park sold $2 million inbonds last year to bolster the police pension, which had just sixcents for every dollar owed retirees.

“Most communities in this state are in no position tocontinuously meet the pension requirements,” saidTom Weisner, mayor of Aurora, the state’s second-largest city, witha population of almost 200,000.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.