While the state waits for the Supreme Court’s SB 1 ruling, Gov. Bruce Rauner and other lawmakers are working up a pitch to amend the state constitution.
Pennsylvania’s reform efforts mirror the national trend of modernizing public and private retirement systems with 401(k)-style defined-contribution plans.
Missing from the discussion on Lincolnwood’s pension crisis is talk of the unfunded liability for the village’s firefighter pension fund. That’s because this fund has no unfunded liability – Lincolnwood privatized their fire protection services 25 years ago.
None of these proposals would even begin to address the Chicago’s pension crisis. The city needs reform, not revenue.
Does the Illinois Constitution’s pension clause spell disaster for the state?
Local governments should structure themselves in a way that best meets the needs of their budget, taxpayers and public employees. And the state should give them the power to do so.
Missing from the discussion on state revenues is what happened with all the money from Illinois’ last major tax hike.
Unfunded pension debt for police and fire pension funds in Wilmette has increased by 16 percent since 2009.
The plaintiffs in the SB 1 case are asking the court to do something extraordinary: to hold, in effect, that pension benefits should receive stronger protection than any other type of constitutional right.
Since 2009, taxpayer contributions to police and fire pensions in Springfield have increased by 44 percent.
Morton Grove's police pension fund has just 54 cents of every dollar it needs in the bank today to meet future pension payments.
Whether they realize it or not, taxpayers in Arlington Heights have a lot of experience with the impact of rising pension costs.
Local governments have their hands tied when it comes to pension reform.