January 8, 2011

Like this is going to work out well - Illinois pensions

Let's not solve the problem, let's just kick it down the road for eight years. From FOX News:
Pension Borrowing a Step Closer to Reality
After several false starts, the Illinois Senate could take action this week on a $4 billion bonding plan to shore up the state�s ailing pension system.

How much bipartisan support it will receive is still up in the air.

�We owe this money to the pension fund. What we�re saying instead is we should put the money in the pension fund and owe the money instead to someone who would issue the bonds,� Senate President John Cullerton, D-Chicago, said.

The Senate Executive Committee approved the proposal along political party lines, and it now moves to the Senate for approval from the whole chamber.

Bonds would be repaid over an eight year period. Not making this year�s payment would eventually cost the state $25 billion, according to Cullerton.

The state started a plan in 1995 to have its pensions system 90 percent funded by 2045, but underfunded pension payments and payment holidays have only exacerbated the situation.

Currently, the pension system is short $90 billion, making it the worst underfunded public pension system in the country.

Since Senate Bill 3515 passed out of the Illinois House of Representatives this spring, there have been several occasions, most recently in November, where the Senate was suppose to take up the plan, but failed to do so.
I am surprised that there are still adults living there. The state is run by three-year olds. Gimme mine now! Posted by DaveH at January 8, 2011 3:38 PM
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