Report: Furloughs shortchange pension funds

February 8, 2011 3:58:56 PM PST
Chicago's inspector general says the city's furlough program may not be such a great way to save money.

A report released to City Hall Tuesday says the furloughs, which are mandatory unpaid days off for workers, are shortchanging the city's already-strapped pension funds.

"The overall effect is...because of the furlough program the city is now directing $24 to $25 million less over the life of the program to the pension funds than what would otherwise have been the case," said Inspector General Joe Ferguson.

The inspector general's report also shows the city overstated the cost savings to taxpayers of the program by $11 million.