“I believe the Illinois Supreme Court has basically ruled that state government pensions are untouchable.”
Correct. The only possible way out is a Chapter 9 Bankruptcy.
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Bankruptcy also doesn’t get cities out of pension payment. Illinois Supreme Court shot that down by unanimous decision. The only way to walk away from pension debt is an amendment to the Illinois Constitution.
Else some cities, who have no budget for ANY police or fire or 911 would declare bankruptcy. Some poor suburbs of Chicago don’t even have enough money to write the pension checks. Illinois Supreme Court has ruled that pensions get top priority over all other obligations.