Federal judge approves Detroit pension cuts
Federal judge approves Detroit pension cuts
A federal judge approved Detroit’s historic Chapter 9 bankruptcy, allowing the city to shave off $7 billion in liabilities from a total debt of $18 billion.
State payment to teacher pensions grows by $300M
State payment to teacher pensions grows by $300M
At the rate pension costs are expected to increase, by 2029 the state will spend more on retirement costs than on aid to schools.
401(k)-style pension reform in Alaska
401(k)-style pension reform in Alaska
In 2005, Alaska froze the state’s traditional defined-benefit pension plan and created a self-managed 401(k)-style retirement plan for new public employees and teachers.
State payment to teacher pensions grows by $300M
State payment to teacher pensions grows by $300M
More than 70 cents out of every new education dollar already goes to teacher retirement costs.
States on the move: 401(k)-style pension reform in Michigan
States on the move: 401(k)-style pension reform in Michigan
Michigan was a trailblazer when it comes to 401(k)-style reform plans for government workers. In 1997, Michigan froze the state employees’ defined-benefit pension plan and created a self-managed 401(k)-style retirement plan for new state workers. It was the first state in the nation to enact bold reforms like these. Michigan state employees who started working...
Memphis set to embrace 401(k)-style pension reform
Memphis set to embrace 401(k)-style pension reform
401(k)-style retirement plans are becoming the new normal in state and local pension reform efforts. Six states have passed 401(k)-style reforms since 2008 – with Oklahoma passing a 401(k)-style reform plan for new workers earlier this year. Memphis, Tennessee, is the most recent example of a city pushing to take politicians out of the retirement...
Top 10 pension facts
Top 10 pension facts
Here are the top 10 facts you need to know about Illinois’ pension crisis: 1) Illinois’ state pension funds have only 41 cents for every dollar they need to pay out future benefits. 2) Illinois has the nation’s worst pension crisis. Taxpayers are officially on the hook for more than $100 billion in unfunded Illinois pension debt,...
Top 10 facts on 401(k)s for government workers
Top 10 facts on 401(k)s for government workers
Illinois politicians have looted and mismanaged government-worker pensions for decades. Now the retirement security of government workers is at risk. It’s time to take politicians out of the retirement business and give workers control over their own retirement futures. Here are the top 10 facts you need to know about 401(k)-style retirement plans: 1) 401(k)s...
Emanuel budget fails to plan for $550 million increase in city pension costs
Emanuel budget fails to plan for $550 million increase in city pension costs
Missing from Chicago Mayor Rahm Emanuel’s recent 2015 budget proposal is a plan to prepare for a massive increase in the city’s pension costs. The city’s required pension payment is slated to more than double next year. The increased cost wasn’t included the 2015 proposal because the city won’t have to pay for the full...
Worker Freedom: A retirement alternative for government workers
Worker Freedom: A retirement alternative for government workers
Government workers across Illinois believe they have no viable alternative to the politician-controlled pension system. They’re stuck holding on to the false hope that politicians will make good on their next set of promises, and that somehow the pension crisis will solve itself in the future. That’s why the Illinois Policy Institute launched workerfreedom.com, an...
Federal judge: Pensions not as protected as you think
Federal judge: Pensions not as protected as you think
Contrary to popular belief, government-worker pensions are not untouchable, at least according to the federal courts. The federal judge in charge of the bankruptcy proceedings of Stockton, California, has ruled that city-worker pension debt must be treated like any other form of debt and could be adjusted under federal bankruptcy law. The ruling is a...
401(k)-style retirement plans: a viable alternative
401(k)-style retirement plans: a viable alternative
Illinois politicians have mismanaged government worker pensions for decades, creating one of the nation’s worst pension crises. Illinois’ five state pension systems collectively have only 41 cents on hand for every dollar they need to pay for future benefits. In the private sector, such a low funding level would mean bankruptcy. Even though politicians have...
Illinoisans pay twice for their legislators
Illinoisans pay twice for their legislators
Illinois’ active legislators will each cost the state budget about $180,000 next year.
Chicago pension debt grows despite high market returns
Chicago pension debt grows despite high market returns
The city of Chicago’s four government-run pension funds each beat their expected investment returns in 2013, according their most recent financial reports. Yet the city’s unfunded pension debt grew by nearly $800 million. The assumed investment return for the city’s four pension funds ranges from 7.5-8 percent. Yet the 2013 investment returns were 13 percent...