Actuaries reportedly treat funded ratios under 40% as a 'point of no return,' suggesting an objective threshold for automatic intervention. Cities crossing it could face mandatory control boards, restructuring plans, or bankruptcy access before collapse.
— A clear trigger would depoliticize rescue timing and reduce bailout risk by enforcing early, rule-based interventions.
Aaron M. Renn
2025.10.16
74% relevant
Chicago’s CFO warning that the police and fire funds will be 'technically insolvent'—under 20% funded—connects directly to the notion of actionable funding thresholds that should trigger automatic interventions before collapse.
Austin Berg
2025.08.25
100% relevant
Chicago police and fire pensions are said to fall to an 18% funded ratio after new sweeteners.
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