Illinois officials: Pension change could be 'devastating'

Associated Press ^ | Aug 24, 2016 4:28 PM EDT | Sara Burnett

[Olog-hai]

Gov. Bruce Rauner’s administration says a pending move by Illinois’ largest public-pension fund would increase the state’s required payment by hundreds of millions of dollars, potentially leading to higher taxes or massive cuts to education and social services already suffering amid a budget crisis.

The board of the Teachers Retirement System, which serves more than 400,000 teachers outside of Chicago, is scheduled to vote Friday on whether to lower its expected rate of return on investments.

A reduction would trigger a larger contribution from the state, where the Republican governor and Democrat-led Legislature have gone more than a year without agreeing on how to close a multibillion-dollar budget hole or address a $111 billion unfunded pension liability. …

[Mark]

Unions should take the Democrats to court, to force sales of any public buildings and parks for Walmarts and other stores and then put up tents to house the politicians. No new taxes!

[Dilbert San Diego]

And separate from this, Chicago has its own financial headaches.

The Chicago schools are trying to get a $1.5 billion line of credit, so as to balance their budget for the coming school year.

Illinois has some screwed up finances.

Will Democrats ever admit that they are largely to blame for these problems????

[VanShuyten]

They keep trying to make this sound like they couldn’t have seen this coming.

[W.]

Base teacher pay on their effectiveness. Their unions see to it that more than a few in their ranks who have no business calling themselves teachers are overpaid to perform in a profession whose product’s quality is questionable at best these days. All mission-critical jobs have quality standards the employees are held to, why should any of them, be they teachers or government employees of any stripe get an automatic free pass to put out halfassed inferior products that weakens America?

[stars & stripes forever]

ILLINOIS is just plain broke. What do you expect from a state that has spit in GOD’S eye and put into law every abomination imaginable?

[buwaya]

This is ridiculous.
They want to maintain a fake rate of return assumption?

[Paladin2]

Start yellin’ @ Yellen. Fix the Fed!

[Olog-hai]

The Fed can’t be fixed. It’s an unconstitutional abomination.

[IncPen]

They keep trying to make this sound like they couldn’t have seen this coming.

The one constant in Illinois politics the last 35 years is Michael Madigan, Speaker of the Illinois House. He is corrupt as they come.

HIs daughter is the Illinois Attorney General.

He fears nothing.

[dr_lew]

Gov. Bruce Rauner’s administration says a pending move by Illinois’ largest public-pension fund would increase the state’s required payment by hundreds of millions of dollars, potentially leading to higher taxes or massive cuts to education and social services already suffering amid a budget crisis.

I hope we all see the unspoken premise here: That the one and only absolute necessity, invincible to compromise, is that the vast army of retired teachers be remunerated at their promised rate, whether it bleed the state, and the heavens, dry, or not.

[hal ogen]

Obviously their “leaders” are criminal subhuman garbage.

[dr_lew]

Well, meet your masters! ... If you live in Illinois, as I do.

[hal ogen]

Abandon all. Leave. It is hopeless there.

[DAC21]

“Will Democrats ever admit that they are largely to blame for these problems????”

Nah, they will blame the voters for believing their campaign promises.

[taildragger]

Maybe this is a start....

The buzz in the Corporate world is "De-Risking" a Pension.

It starts with assuming a much less rate of return and I think it was Ford that shifted almost entirely out of equities into Bonds / Corp Bonds to level out / project the liability and control it going forward.

Here are some screenshots of the concept and strategies within, but I doubt the teachers and or their Unions will break out of their political mindset and consider it as a road to keeping their pensions running vs. going belly up.....

[aces]

it is out of hand, about the only retirement comes from working for the gangstamint...if others cant retire why should they on our tax dollars.

fix it...

[Lion Den Dan]

“Social Services,” can not suffer from cuts as they are not legal in the first place. Government has no right to take money from productive citizens and give it to protected leaches.

[Chode]

$1.5B, and exactly WHAT are they proposing to use for collateral???

[Lurker]

So just vote to expect a 30% ROI and the problem is solved.

L