Why the State Journal-Register is wrong about city pensions
Why the State Journal-Register is wrong about city pensions
The State Journal Register’s recent editorial critiquing the Illinois Policy Institute’s study, The crisis hits home: Illinois’ local pension problem, was disappointing on many fronts. The city of Springfield performed dismally in the Institute’s statewide audit, which measured ten different metrics to arrive at a comprehensive picture of a city’s fiscal health. Springfield scored worst among the state’s...
Illinois pension reform resurfaces
Illinois pension reform resurfaces
In December 2013, a pension reform bill passed out of the Illinois General Assembly. Sponsors of the bill estimated $160 billion in savings over the next 30 years, and supporters touted that the pension problem in Illinois was finally fixed. In fact, most of the dialogue throughout the Capitol was that the state-funded pension systems...
By Matt Paprocki
Illinois’ pension crisis hits home
Illinois’ pension crisis hits home
Illinois’ collapsing state pension systems are seen as the poster child of pension crises across the nation. But another pension crisis is taking place even closer to home. There are nearly 650 locally run pension funds in Illinois, which cover retired police officers and firefighters, along with one consolidated fund for municipal retirees. These municipal...
Six places Chicagoans will flee to if property tax increases are part of Chicago’s pension fix
Six places Chicagoans will flee to if property tax increases are part of Chicago’s pension fix
There’s one simple reason why Detroit finally filed for bankruptcy in 2013. When it came time to pay its bills, the Motor City had run out of taxpayers. Taxpayers fled Detroit for decades as the city’s tax bill kept growing and its vital government services, such as public safety, were slashed. Detroit has lost more...
Madigan’s Illinois pension fix: $15B less in savings, more gimmicks
Madigan’s Illinois pension fix: $15B less in savings, more gimmicks
Not unlike ObamaCare, a bill Congress had to pass “to find out what’s in it,” Illinois’ General Assembly passed a pension fix in December 2013 without an official scoring of the bill. During floor debates, House Leader Mike Madigan and proponents of Senate Bill 1 promised $160 billion in savings over 30 years. Many opponents...
Top 10 facts about Illinois pensions
Top 10 facts about Illinois pensions
Illinois has the worst pension crisis in the nation. If real reforms aren’t enacted, retirees will see their pensions slashed, taxpayers will be forced into a massive bailout and younger state workers might not receive a pension at all. The recent pension reform bill that passed is actually a step backward for the state. Only...
By illinoispolicy
Illinois’ pension savings greater than originally forecast? Not so fast
Illinois’ pension savings greater than originally forecast? Not so fast
You may be hearing about rosy new pension estimates coming out of Springfield, but don’t be too quick to bite. A memo recently released by legislative leadership points to “good news” coming from a new analysis of Senate Bill 1 to be included in Illinois’ upcoming bond offering on Feb. 6, 2014. The memo claims...
Pension ‘fix’ has many problems, but the Pension Clause isn’t one
Pension ‘fix’ has many problems, but the Pension Clause isn’t one
In December 2013, Gov. Pat Quinn signed a pension “reform” bill with many serious flaws. For example, it: barely makes a dent in the state’s unfunded pension liability; guarantees pension funding at the expense of taxpayers and all other government services; creates a fake 401(k) plan; doesn’t means test cost-of-living adjustments, or COLAs; still allows state workers to retire much earlier...
Illinois has 43% of the country’s public pension plans
Illinois has 43% of the country’s public pension plans
Illinois has 43 percent of the nation’s public pension plans, according to a 2012 study published by the Commission on Government Forecasting and Accountability, or COGFA, conducted by Marquette Associates on local police and fire pensions in Illinois. According to publicly available data, there are 1,511 public pension plans in the United States. With 657...
By Brian Costin
Pension reform: Institute’s work on 401(k)s
Pension reform: Institute’s work on 401(k)s
Illinois’ pensions are among the worst-funded in the nation. The state has just 40 cents for every $1 that has been promised in benefits, and many government workers are concerned that they do not have choice and control over their own retirement. Illinois should not be forced to leave their retirement to the whims of...
By Chris Andriesen
A principled stand against pension “fix”
A principled stand against pension “fix”
Lawmakers met in Springfield on Tuesday for a special session on pension reform. After an early morning committee hearing, a gathering of each of the four legislative caucuses and several hours of lengthy floor debates, a pension bill passed the House and Senate, and now awaits Gov. Pat Quinn’s signature. The Illinois Policy Institute adamantly...
By Matt Paprocki
Illinois General Assembly sends pension “fix” to Gov. Quinn
Illinois General Assembly sends pension “fix” to Gov. Quinn
The Illinois General Assembly sent a pension bill to Gov. Pat Quinn. It is important to be clear about what this bill is and is not. Let’s start with what this bill is not. This bill is not the sweeping reform that Illinois has been waiting – fighting – for over the past few years....
By John Tillman
Why Illinois teachers should reject new pension deal
Why Illinois teachers should reject new pension deal
Madigan’s new pension “fix” does nothing to address the problems with the current pension system. Here’s another reason why Illinois teachers should urge their legislators to vote “no”: the new pension bill does nothing to address the unfair distribution of pensions under the Teachers’ Retirement System, or TRS. Amazingly, the pension a teacher in TRS...