How did Illinois’ pension plans become so underfunded? In general, by promising far more than can possibly be delivered.
Lake Zurich is struggling under the weight of growing pension costs.
Jon Burge draws thousands of dollars each month from a broken system.
As long as the state mandates pension rules and regulations for local governments, unfunded pension liabilities will continue to pressure local budgets.
Illinois lawmakers now have at least one model on which to base necessary reforms.
While the state waits for the Supreme Court’s SB 1 ruling, Gov. Bruce Rauner and other lawmakers are working up a pitch to amend the state constitution.
Pennsylvania’s reform efforts mirror the national trend of modernizing public and private retirement systems with 401(k)-style defined-contribution plans.
Missing from the discussion on Lincolnwood’s pension crisis is talk of the unfunded liability for the village’s firefighter pension fund. That’s because this fund has no unfunded liability – Lincolnwood privatized their fire protection services 25 years ago.
None of these proposals would even begin to address the Chicago’s pension crisis. The city needs reform, not revenue.
Does the Illinois Constitution’s pension clause spell disaster for the state?
Local governments should structure themselves in a way that best meets the needs of their budget, taxpayers and public employees. And the state should give them the power to do so.
Missing from the discussion on state revenues is what happened with all the money from Illinois’ last major tax hike.
Unfunded pension debt for police and fire pension funds in Wilmette has increased by 16 percent since 2009.