New Study Highlights Significant Cost of Pension Crisis
by Amanda Griffin-Johnson A new study by Robert Novy-Marx of the University of Rochester and Joshua Rauh of the Kellogg School of Management calculated the contribution increases that would be necessary to fully fund state and local pension systems across the U.S. over the next 30 years. The study found that in Illinois, annual government contributions would have to increase...
A new study by Robert Novy-Marx of the University of Rochester and Joshua Rauh of the Kellogg School of Management calculated the contribution increases that would be necessary to fully fund state and local pension systems across the U.S. over the next 30 years. The study found that in Illinois, annual government contributions would have to increase to $15.5 billion, compared to the current contribution of $6 billion, in order to fully fund government pensions without any policy changes. The required contribution increase is equivalent to $1,907 per household annually, which is the 8th highest in the nation.
Pension costs will continue to crowd out other government services in Illinois unless significant reforms are implemented. To learn more about the pension crisis in Illinois, check out our research and policy solutions at www.IllinoisPolicy.org/pension.
