- Associated Press - Tuesday, April 1, 2014

CHICAGO (AP) — Chicago Mayor Rahm Emanuel’s plan to cut about half of the city’s pension debt would raise property taxes while increasing the amount of money city workers contribute to their retirement.

The proposal increases property taxes by about $250 million over five years - raising taxes about $50 a year for the average homeowner.

It’d also require city employees to eventually contribute 11 percent of their pay to their pension - up from the current 8.5 percent. And Emanuel wants to slow the growth of cost of living increases for city workers.

Emanuel doesn’t need unions to sign off on the agreement, but officials say he has support from some labor groups.

The proposal doesn’t address underfunded pension plans for teachers, police and firefighters.

The General Assembly must approve the plan.

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