pension

ILGA.gov

Legislators writing an overhaul of the state's pension systems could be nearing the end of their work.

Feedback's been plentiful since late last month, when a draft of a pension plan drawn up by a bipartisan legislative committee was leaked. Unions hate it - saying it overreaches in cutting retirement benefits. Business groups say it doesn't go far enough to save the state money. Not to mention complaints, including from the governor, that the committee is taking too long.

Amanda Vinicky

Illinois' largest public pension fund hit a major low in 2012, its rate of return was less than one percent.  But an early analysis shows the last fiscal year was better than expected. The success isn’t expected to make much of a dent in Illinois’ nearly $100 billion dollar pension liability, however, which lawmakers thus far have failed to tackle.   

Sen. Kwame Raoul
Amanda Vinicky/WUIS

  Governor Pat Quinn already has one primary challenger, but there's talk he may get more. 

A lot of politicians are heading to the capital city this week; it's the State Fair, and a time for annual political meetings and rallies.

Democratic Sen. Kwame Raoul was driving down from Chicago Tuesday afternoon, in time for his fundraiser last night at a Springfield bar.

Dana Heupel
WUIS/Illinois Issues

Democratic lawmakers from Wisconsin and Indiana who saw Illinois as a safe haven in their battles to protect public employee rights might be surprised to learn that top Democrats here may accede to a Republican effort to force pension reductions on current public employees.

Total liability $126.5 billion
WUIS/Illinois Issues

To say Illinois faces a hole in funding its public employee pension systems is like saying the Grand Canyon is an impressive ravine or the Mindanao Trench a good-size gully.

Indeed, “hole” is hardly an appropriate word. “Abyss” and “chasm” come readily to mind, with “bottomless pit” not too far away.

Imagine getting a home equity loan for $100,000, spending $27,000 of it on a new car and investing the rest — then counting on the interest earned to cover the interest paid, as well as the cost of the car. That’s the essence of Gov. Rod Blagojevich’s $10 billion pension bonding plan, which became law in April.

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