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Report Claims Taxpayers Are Paying Millions More Than Needed In Unnecessary Fees For Chicago Police Pension Fund

CHICAGO (CBS) -- A scathing report has been issued about Chicago's police pension fund, claiming taxpayers are paying millions of dollars more than needed in unnecessary fees.

Financial auditor Chris Tobe released a report Tuesday, three months after a group of retired officers hired him to review the management of the Policemen's Annuity & Benefit Fund of Chicago.

The report is titled, "Twisted Priorities: Putting Wall Street & Chicago money managers' interests over Police Officers & Taxpayers."

Read The Full Report

Tobe said the police pension fund is one of the most underfunded in the country.

He said those hidden fees should set off alarms for taxpayers.

"The financials claim around $7 million a year, but I've estimated over $70 million – 10 times that amount – paid out in no-bid contracts to mostly what we call private equity hedge funds," Tobe said.

Tobe is also suing the pension fund. He claims the fund failed to give him pertinent – and what should be public – information after he filed a public records request.

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