 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
|
Pensions
A state's unfunded pension liability ― the difference between what a state owes as its required employer contribution to pension plans for state employees and what it has actually paid ― affects everything from the revenue available to fund public services like education and healthcare, to a state's bond rating and ability to pursue capital improvement projects. After decades of neglect from both Democratic and Republican administrations, Illinois now has the greatest total unfunded pension liability in the nation. How policymakers deal with it going forward is everyone’s concern, because the ultimate resolution of Illinois' obligation to pay its unfunded pension liability will directly impact the state's solvency and ability to continue providing essential services.
The Illinois Retirement Security Initiative (IRSI)
Working with its partners, CTBA created the Illinois Retirement Security Initiative to address these issues and create and advocate for policies to fix our pension funding problem. Click here to find out more about the IRSI or to become an endorser.
Pension Presentations Click below to view a presentation given to members of the Governor’s Pension System Modernization Task Force. “The Illinois Funding Crisis” is a compelling presentation that highlights the history behind Illinois’ worst unfunded pension liability and how a responsible revenue stream can solve it. August 26, 2009
Analysis & Reports Politics over policy: Swift “Reform”, Questionable Savings, Delayed Consequences Illinois Retirement Security Initiative Briefing Paper, *REVISED* May 14, 2010 This briefing paper examines the provisions and public policy implications of the new statute, which reduces retirement benefits for future public employees but fails to implement any real reforms needed to pay down the state’s huge debt for pension benefits already earned by current employees and retirees. Pew Study Finds State's Face $1 Trillion Shortfall in Retiree Benefits, February 18, 2010.
The figures detailed in Pew’s
report, The
Trillion Dollar Gap, include pension, health care
and other non-pension benefits promised to both current and
future retirees in states’ and participating localities’
public sector retirement systems.
February, 2010 Politics Prevent Task Force from Exposing the Facts, IRSI Press Release, November 19, 2009 Taxpayer's Deserve to Know the Facts on State Retirement Benefits AFL-CIO Press Release on Pension Modernization Task Force, November 9, 2009 Written Testimony provided to the Pension Modernization Task Force - Funding Subcommittee, October 26, 2009 Reasons to Oppose SB 1292, May 12, 2009 Facts on the five state funded retirement systems, April 2009 Is Bigger Better? Article on consolidating Illinois pension systems, Pensions & Investments Magazine, April 23, 2009 HB 3798 Fact Sheet, March 18, 2009 $275-$610 million billed to taxpayers for new pension proposal, February 23, 2009 Debunking Illinois Pension Myths, February 2009 Chicago Tribune blames public sector employees for pension shortfall! Read IRSI's Response (May 2007)
Illinois Pension Funding Problem: Why it Matters November 2006
An analysis of the five Illinois retirement systems finds that the state's worst-in-the-nation unfunded pension liability has grown by more than $7 billion in just the last two years. Lawmakers must act now to pay down the debt or its impact on the state budget will soon affect everything from education and health care to the state's bond rating and its ability to pursue capital improvement projects.
Pension Funding and the FY 2008 Budget
Summary of the Commission on Government Forecasting and Accountability Report on the Financial Condition of the Illinois Public Employee Retirement Systems, July 2007
IRSI illustrates the source of Illinois' unfunded pension liability on this easy-to-use fact sheet. IRSI gives you a glimpse of the reality of Illinois public servants: fact Sheet The pension unfunded liability cannot be legislated away; the debt must be repaid. This means that when Illinois eventually decides to deal with the burgeoning unfunded liability, money will have to be taken from elsewhere, i.e education, transportation, human services, etc. Read: Illinois burgeoning unfunded liability, more than a pension problem!
Frequently Asked Questions Q. What is a defined benefit system? Q. What is a defined contribution system? Q: Aren’t public employee pension benefits extravagant? Q: Aren’t defined benefit pension systems a financial burden to taxpayers? Q. Aren’t defined contribution investment returns better than defined benefit investment returns? Q. Aren’t defined contribution plan fees and expenses lower than those of a defined benefit plan? Q. Aren’t all defined benefit retirement systems severely underfunded? Q. Aren’t all private sector employers eliminating their defined benefit plans? Q. Don’t employees prefer defined contribution plans? Q. What is the source of Illinois burgeoning unfunded pension liability?
|
