Roth Fioretti LLC sets a precedent with the Harvey, Illinois pension settlement, setting the stage for other struggling communities. Under the settlement terms, Harvey has agreed to pay 35% of the money from the state sales tax earmarked from the City of Harvey to help fund the Harvey police and fire pensions. “This deal puts us on solid footing for the future”, says Bob Fioretti, attorney representing the City of Harvey.
The State of Illinois has more than 600 municipalities with police and fire pensions, of which approximately 400 are in dire straits with underfunded pensions. A new law in Illinois has come into effect and requires that all municipalities make good on their pension payments. The State Comptroller took action against Harvey, IL, the first municipality required to meet the state mandate. Fioretti called the pension settlement a “rational, reasonable solution.”
Bob Fioretti of Roth Fioretti LLC talks on Chicago Tonight about the precedent that the Harvey, IL settlement makes for hundreds of other Illinois towns and cities who may find themselves in de facto bankruptcy. Learn how the struggles of Harvey, IL and the efforts made between its government, pension boards, and citizens helped avoid bankruptcy and helped Harvey, IL meet state regulations.
Click photo below to watch the Chicago Tonight episode on the Harvey, IL pension settlement.