Friday, December 09, 2011

Life in "Progress" City - Chicago edition

From the Windy city

Federal authorities have begun a criminal investigation into how nearly a dozen union officials became eligible for inflated city pensions, according to subpoenas obtained by the Tribune and WGN-TV through an open-records request.

The Chicago municipal employees and laborers pension funds each received subpoenas from a federal grand jury in October seeking "records pursuant to an official criminal investigation." The request seeks documentation on 11 labor leaders who appeared in reports from a joint Tribune/WGN-TV investigation.


The reports focused on a 1991 law that allowed union leaders who once worked for the city to receive credit in public pension plans for their private union work. When they retire, the union officials' pensions aren't based on their old city paychecks but on their much higher union salaries.


That opened the door for them to land public pensions that far exceeded their pay as city employees — even as they continued to earn lucrative salaries from their unions.


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