Thursday, June 28, 2018

The Path to Pension Reform in Illinois is not Pretty

The Chicago Federal Reserve Bank and the Civic Federation held a conference in April to assess the State's options with respect to its pension systems liabilities.

A copy of "Navigating Pension Reform in Illinois" can be found here.

Basically, the report says what we all know that the State has ignored its funding mandates, that workers and participants in the pension systems must eventually accept pension reductions even if this means a State Constitutional change, which in this political environment would be explosive, and/or find more revenue, such as higher property taxes.

This what happens when several administrations of both parties does not fully fund pension system contributions putting off the inevitable for the suddenly more wealthy future which has failed to arrive.

Double dippers need to be shaved.  Bonus salary and other end of work incentive increases just prior to retirement to increase pension benefits need to cease.  The next administration will need to belly up to the deepening gorge and start shoveling.

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