Pension News - FABF

DECEASED PARTICIPANTS FROM AUGUST 1, 2012 THROUGH MARCH 31, 2013 (cont.)
NAME DATE OF DEATH
CHARLES W. FISHER 03/12/2013 BATTALION CHIEF
ISABELLE VARGA 03/13/2013 WIDOW OF JOSEPH A. VARGA
JOY N. DAVIS 03/14/2013 PARAMEDIC
ARMELDA HARRILL 03/14/2013 WIDOW OF WILLIAM A. HARRILL
LOIS COOPER 03/15/2013 WIDOW OF ALBERT COOPER
ELMER W. BAUER JR. 03/17/2013 FIREFIGHTER
RUDY STEIGERWALD 03/22/2013 FIREFIGHTER
JUANITA G. GAGNON 03/23/2013 WIDOW OF ARTHUR R. GAGNON
LILLIAN KELSO 03/25/2013 WIDOW OF VERNON T. KELSO
DONALD J. WALPOLE 03/28/2013 BATTALION CHIEF
LEROY R. FLEMING 03/29/2013 FIREFIGHTER
EDWARD G. ZAUKAS 03/30/2013
JAMES M. DONOVAN 03/31/2013 FIREFIGHTER
AARON L. FINLEY 03/31/2013 FIREFIGHTER
MARIANNE McHALE 03/31/2013 WIDOW OF MEL G. McHALE
* Denotes information received after publication of the last newsletter
Denotes died active
Our Deepest Sympathy To the Families and Friends Who Have Lost Loved Ones
DAN FABRIZIO
Dear Brothers & Sisters,
There was a report in the February 22 nd edition of the Chicago Sun-Times regarding two issues discussed at the February
20, 2013 meeting of the Firemen’s Annuity and Benefi t Fund of Chicago: disabilities and divestment.
The Firemen’s Annuity and Benefi t Fund is the entity responsible for the payment of disability and pension benefi ts
to Chicago fi refi ghters, paramedics and their families. Contributions by both the fi re service employees and the city of
Chicago, as prescribed by state statute, are collected in order to fund the plan. The city does not, however, pay Workmen’s
Compensation for its fi refi ghters and paramedics, except for burns of exposed skin. The city does not pay Social Security for
its fi refi ghters. The city did not remit any Medicare payments for its fi refi ghters prior to 1986. Because of this, fi refi ghters
and paramedics are not eligible for Workmen’s Comp, Social Security or Medicare (pre-1986). The Firemen’s pension
fund is our member’s sole source of disability and retirement security.
It was reported that fi refi ghters and paramedics collected $27 million in taxpayer funded duty disability benefi ts in 2011.
The actual amount of duty disability benefi ts paid by the Fund was $15.3 million, representing approximately 6.7% of
total Fund expenditures during 2011. Also omitted from the report was that since 1999, the number of members in receipt
of disability benefi ts has declined 31% because of revised procedures established years ago by the Fund’s Trustees. Lastly,
an inconvenient truth about disability payments is that the city has not contributed any amount, as required by state statute,
to reimburse the Fund for its disability payments . Such a failure to pay what is owed to the Fund for disabilities is one of
the causes for the severe underfunding suffered by this plan for so many years.
Yes, the Firemen’s plan is seriously underfunded. As of 2011, the Fund’s actuarial report indicates that the pension fund
had only 28 cents in assets for every dollar needed for future benefi t. But why is that? Most pension funds in the country
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