Both comments and pings are currently closed. Chicago/Illinois Pensions: What Does It Take To Get To Reform? But the communities outside of Chicago that operate full-time, paid police and fire departments all have separate retirement funds for those employees, each with its own board of trustees and administrative staff. If the 69 public safety funds operated by communities in the Northwest Municipal Conference had earned the same kind of returns that IMRF saw over a 12-year period from 2003 to 2015, those assets might have grown by an additional $978 million. “I get frustrated when people suggest that the Illinois Senate, the General Assembly in the state have not been doing things, however; in 2011 we implemented a Tier 2 pension system that dramatically changes pensions for employees hired as of 2011 on. Our’s is fully solvant and managed well. The unfunded government pension liabilities Springfield politicians placed on the shoulders of Illinois taxpayers have grown. We are financially sound, even after we had to get the Dept. Making Sense Of The Medicare Part D Drug Plan Deductible, How Some Home-Business Owners Can Get The Government's New PPP Loans, Navigating Your Career Through The Changing World Of Work, Curiosity: The Most Important Trait For Financial Advisors, Bad News For Workers Is Good News For The Stock Market, Cautionary Advice About Small-Business Credit Cards, Medicare Could Be Insolvent In 2024: How To Prevent It, The Pension Problem: What Happens Now?”, Mayor Lightfoot’s recent statements, however cryptic, her initial demand over the summer that Chicago get in on the deal, recent statements such as those at the Crain’s editorial board, without actuarial analysis guiding the design, somewhat more than half the salary of a teacher nearing retirement. As always, you’re invited to share your opinions at JaneTheActuary.com! He has also tried to add another person to the board with no luck. I write about retirement policy from an actuary's perspective. And she rejected the possibility of a constitutional amendment eliminating the pensions guarantee, citing presumed union spending to get it voted down and to bring in lawyers to file suit against it. And how long before the pensionable pay cap begins to bite enough workers? Gov. We know they’ve got enough power to deter Lightfoot from seeking a new ramp, and their negative reaction to a proposed re-amortization ramp from Gov. Don’t try to prop up failing funds at the expense of the well managed ones. J.B. Pritzker’s best fix is pension reform. Illinois lawmakers voted Tuesday to approve a landmark pension reform package that will cut retirement benefits for teachers, nurses and other retired and current state workers. I have also urged readers, in various articles, to consider the Tier 2 pension reform that Sen. Steans is so pleased with – a reform which, without actuarial analysis guiding the design, is unsustainable in its own way. And it does raise the question: if good governance and a sense of responsibility to the people of the state are not enough to get Illinois’ legislators and Chicago’s aldermen to reform pensions – and they clearly weren’t enough to have prodded them to have funded them properly for generations past – what does it take? That means the unfunded liability of those funds, estimated at $2 billion in 2016, would have been cut roughly in half, from a little over $2 billion to just over $1 billion, without raising local taxes, she said. Everyone else is expendable. A report from one of the largest credit rating agencies criticized Gov. Illinois already has the 9 th highest state tax burden in America. Illinois’s pension debt is the worst in the nation relative to the size of each state's economy. Opinions expressed by Forbes Contributors are their own. This is something of a postscript to last week’s articles on Chicago’s pension debt, as I ask myself how realistic the prospects for reform truly are, and try to tie up some remaining loose ends. That’s been changed. Outside the task force, the Illinois Municipal League and a coalition of communities in the northwest suburbs of Chicago have been leading the charge, offering as many as seven different alternatives they argue would save their taxpayers money and improve the financial condition of those retirement systems. Preliminary reports from Illinois’ state actuaries show the state’s pension shortfall worsened to a record $137 billion in 2019.
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