Illinois governor unveils "bold" plan to save pensions

[WestVirginiaRebel]

Yahoo News:

CHICAGO (Reuters) - Illinois would shore up its sagging public employment retirement system under a plan outlined on Friday by Governor Pat Quinn that gives workers a choice between higher contributions and lower benefits.

With pension funding absorbing more and more of the state's budget, Quinn said his plan would save taxpayers $65 billion to $85 billion over 30 years and help stop a further fall in the state's relatively low credit ratings.

Illinois' unfunded pension liability has grown to a huge $83 billion after the state skimped on funding for years. In fiscal 2013, which begins July 1, the state's payment into the pension system will hit $5.2 billion, or 15 percent of general revenue spending - up substantially from 6 percent in 2008, according to the governor's office.

Quinn, a Democrat, said his plan would leave the system, which covers state, local school, university and community college employees, 100 percent funded by 2042. Without it, he said Illinois will have expected payments totaling nearly $310 billion between 2012 and 2045, when a $32.7 billion unfunded liability would still remain.

"This plan rescues our pension system and allows public employees who have faithfully contributed to the system to continue to receive pension benefits," he said.

Under the proposal, workers' pension contributions would increase by 3 percent, while cost-of-living adjustments would be reduced. A retirement age of 67 would also be phased in.

Employees who accept the plan, which would need legislative approval, would continue to have their pay increases counted in their pension calculations and would receive a state subsidy for healthcare in retirement. Quinn added he expects at least 75 percent of workers to choose his plan.

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Pat Quinn tries to slow his state's drive off the financial cliff.

[Casino67]

No comment from the unions yet? Assuming the workers are represented by a union(s).

[raygun]

IF the IL ship-of-state is driven off the cliff at 250 MPH, physics stipulates that it will impact at a mere 110 MPH.

 

W_VA_Rebel is correct once again: Quinn slowed down the "decline off the financial cliff."

 

W/out doubt that is NOT what W_VA_Rebel intended to intimate.

[Evad]

RAT solutions for RAT constituency

[raygun]