Pensions

Illinois needs to end the third-party payer problem for teacher pensions

Illinois’ teacher pension system is structured to allow local school boards to agree to generous contracts, knowing taxpayers across the state will foot the bill. This system should change so that local school boards cover their own pension costs. That way, they will bear the full cost of salary increases they decide on, rather than pushing much of that cost onto unaware state taxpayers.

By Michael Lucci

Pension reform plan for Illinois: Right under its nose

Since 1998, more than 20,000 state university workers have opted into a 401(k)-style plan instead of the traditional pension plan.

By Ted Dabrowski, John Klingner

Each Illinois household on the hook for $56K in government-worker retirement debt

In 2010, the unfunded debt related to pensions and retiree health care costs for local and state government workers across Illinois was $203 billion, the equivalent of more than $43,000 per household. In just six years, the total debt Illinois households are on the hook for has jumped to $56,000, or 31 percent. That’s a $13,000 increase for each household. Total unfunded debt for state and local governments in Illinois now totals $267 billion.

By Ted Dabrowski, John Klingner

Illinois universities charge high price for perverse priorities

More than 50 percent of the state’s $4.1 billion budget for public universities is spent on retirement costs alone.

By Austin Berg

Unpaid sick leave spikes Illinois teachers’ pension benefits

While sick leave is necessary for working teachers, letting unpaid sick leave accumulate for the purpose of boosting pensions is an expensive perk that taxpayers cannot afford.

By Ted Dabrowski, John Klingner

Interest on Illinois’ pension debt is $9.1B per year

A golden rule of finance is this: Debt that can’t be paid won’t be paid.

By Michael Lucci

Defending the indefensible: IMRF director on pensions

The head of the Illinois Municipal Retirement Fund, or IMRF, has dismissed calls for pension reform, disregarding the fact that pensions aren’t manageable, benefits aren’t affordable, and previous “reforms” propped up pensions on the backs of new workers.

By Ted Dabrowski, John Klingner

State of Illinois’ pension debt jumps to $130 billion

Illinois households are now on the hook for $27,000, up 17 percent from 2015.

By John Klingner

Springfield pensions hurt city credit rating, residents

The ratings agency cited the city’s “considerable growth” in pension debt in its Oct. 28 downgrade to A3 from A1.

By Ted Dabrowski

Damage from Edgar ramp obscured by dotcom boom

Former Gov. Jim Edgar’s pension compromise with House Speaker Mike Madigan in the 1990s set the state’s pension funds down an unsustainable road.

By Ted Dabrowski, John Klingner

S&P downgrades Illinois credit rating closer to junk

The ratings agency also warns that another downgrade could be coming if the state doesn’t enact serious reforms to improve its fiscal condition.

By John Klingner

Moody’s issues another CPS credit downgrade

Another credit downgrade shows borrowing, taxes and bailouts can’t fix CPS’ financial crisis, but real structural reforms are needed.

By John Klingner

California court rules that pensions can be reformed going forward

Unlike the Illinois Supreme Court’s protection of the status quo, a California appeals court is allowing a pension reform law to move forward and potentially reduce that state’s pension burden.

By John Klingner

Number of six-figure Chicago pensioners has tripled in last 4 years

More government workers are taking home massive yearly pension payments as Chicagoans are battered by tax hikes.

By Austin Berg