Illinois Pension Law Saves $15 Billion Less Than First Thought
From the Chicago Tribune
New calculations show the state will save about $15 billion less than initially projected from the controversial major government worker pension overhaul that lawmakers and Democratic Gov. Pat Quinn approved last month.
Critics who say the pension law didn’t go far enough cried that supporters are “backtracking” on the savings and point to the change as a sign more money-saving changes to public employee retirement systems will be needed. Backers of the law, however, pointed to some good news from the latest number crunching — it shows that the state will owe less toward covering retirement costs.
Last month, House Speaker Michael Madigan championed the pension overhaul as saving $160 billion over 30 years. But when the financial minds at the pension systems covering state workers, teachers outside Chicago and public university employees took a look, the savings estimate came out to $145 billion. The difference is in part a reflection of the various sets of assumptions folks wearing the green eyeshades make about how long tens of thousands of government workers will live and work.
The figures emerged in new documents released as Illinois prepares to borrow $1 billion early next month for public works projects including roads and schools. House Republican leader Jim Durkin of Western Springs told his troops in a memo late Friday that it is “good news to Illinois taxpayers and the systems.” It was a point echoed by Senate President John Cullerton, D-Chicago, and Senate Republican leader Christine Radogno.
Read more in our daily News Update...
From the Chicago Tribune
New calculations show the state will save about $15 billion less than initially projected from the controversial major government worker pension overhaul that lawmakers and Democratic Gov. Pat Quinn approved last month.
Critics who say the pension law didn’t go far enough cried that supporters are “backtracking” on the savings and point to the change as a sign more money-saving changes to public employee retirement systems will be needed. Backers of the law, however, pointed to some good news from the latest number crunching — it shows that the state will owe less toward covering retirement costs.
Last month, House Speaker Michael Madigan championed the pension overhaul as saving $160 billion over 30 years. But when the financial minds at the pension systems covering state workers, teachers outside Chicago and public university employees took a look, the savings estimate came out to $145 billion. The difference is in part a reflection of the various sets of assumptions folks wearing the green eyeshades make about how long tens of thousands of government workers will live and work.
The figures emerged in new documents released as Illinois prepares to borrow $1 billion early next month for public works projects including roads and schools. House Republican leader Jim Durkin of Western Springs told his troops in a memo late Friday that it is “good news to Illinois taxpayers and the systems.” It was a point echoed by Senate President John Cullerton, D-Chicago, and Senate Republican leader Christine Radogno.
Read more in our daily News Update...