The expedited hearing is good news. It means the state will know specifically what it can do to address its $111 billion unfunded pension debt sooner rather than later.
The list of reasons for denying government workers the benefits of 401(k)-style plans in favor of politician-controlled pensions is short at best, and it’s growing shorter every day.
In 1985, only one in 10 Fortune 100 companies offered 401(k)-style plans to new employees. Today, that number has increased to seven in 10.
Illinois state government contributes the equivalent of 35 to 127 percent of government-worker salaries to keep its pension systems above water.
Cities across Illinois have been forced to slash services and hike taxes to make room in the budget for pension costs.
Senate Bill 2758 establishes a brand new governmental entity with a brand new governmental function: to establish and administer a “mostly mandatory” IRA retirement savings program for private-sector workers.
Few options remain as Illinois governments confront budget-busting pension obligations.
Illinois ranks worst in the nation on ability to pay for its pension debt.
Pension recipients should not be treated as a privileged class of citizens.
Senate Bill 1 has been stuck down.
Utah’s pension funds had a 50 percent chance of becoming insolvent by 2028 prior to the state’s reform plan. The chance dropped to 10 percent after the state greatly improved the solvency of its pension funds with 401(k)-style reforms.
With a mere 39 cents on hand for every dollar needed to pay for future benefits, the state would need a three-year government shutdown just to break even.
The Peach State has been keen to modernize their public pension system.
Illinois’ municipal pension shortfall, excluding Chicago, has spiked to more than $12 billion from $1 billion just a decade ago.