Opponents of pension reform in Illinois are quick to malign self-managed accounts, such as 401(k)s, as too risky for government workers. They claim that workers are better off with pensions paid for and run by the government, as if that somehow makes them more secure. But there are three key problems with that argument. The...

Detroit’s recent bankruptcy is sending cities and states a warning: taxpayers shouldn’t be taken for granted. Unfortunately, Illinois’ long-term pension plan does exactly that. Springfield still believes that taxpayers are passive sources of revenue. While state worker contributions to Illinois’ five pension systems have gone up by 75 percent since 1998, taxpayer contributions have gone...

Illinois has the nation’s worst-funded pensions. Each Illinois household can expect to pay more than $40,000 in additional taxes to cover the pension shortfall if no reforms are passed. The size of the pension crisis demands that state lawmakers pass the boldest reforms in the country. Fortunately, Illinois lawmakers can look to the examples other states have...

A six-point pension plan created by the Institute of Government and Public Affairs, or IGPA, fails to solve Illinois’ pension problem. That’s because the plan, Senate Bill 2591, maintains the state’s unmanageable defined benefit plan for current employees. It requires all new employees to participate in a hybrid defined benefit and defined contribution pension plan, and...

Increasing local pension accountability would increase each school district’s total costs by an average of 3.7 percent.