State Of Illinois' Record Of Shorting Pensions Goes Back Decades
From the Springfield State Journal-Register
“Of principle concern to the Commission is the accumulation of large unfunded accrued liabilities resulting for the most part from the inadequacy of government contributions in prior years to meet increases in costs due to the upward trend in salary rates and large additions to the membership of the funds.”
That could have come from any number of studies in recent years about funding problems facing public employee pension plans in Illinois. But it didn’t. That warning was part of a report by the Illinois Public Employees Pension Laws Commission to Gov. William Stratton -- in 1959.
Even that wasn’t the first warning that benefits promised by public employee pensions were outstripping the money put into the systems to cover those benefits.
But in the 54 years since that report was issued, the debt of the state’s pension systems has grown exponentially, and mostly for the same reason the Pension Laws Commission warned of in 1959 — inadequate contributions by the government.
The reason for those inadequate contributions hasn’t changed either. Putting more money into pension obligations meant funds had to be taken away from something else, such as education or health care. It might have meant cutting the state work force or forcing officials to try to pass an unpopular tax increase.
Read more in our daily News Update...
From the Springfield State Journal-Register
“Of principle concern to the Commission is the accumulation of large unfunded accrued liabilities resulting for the most part from the inadequacy of government contributions in prior years to meet increases in costs due to the upward trend in salary rates and large additions to the membership of the funds.”
That could have come from any number of studies in recent years about funding problems facing public employee pension plans in Illinois. But it didn’t. That warning was part of a report by the Illinois Public Employees Pension Laws Commission to Gov. William Stratton -- in 1959.
Even that wasn’t the first warning that benefits promised by public employee pensions were outstripping the money put into the systems to cover those benefits.
But in the 54 years since that report was issued, the debt of the state’s pension systems has grown exponentially, and mostly for the same reason the Pension Laws Commission warned of in 1959 — inadequate contributions by the government.
The reason for those inadequate contributions hasn’t changed either. Putting more money into pension obligations meant funds had to be taken away from something else, such as education or health care. It might have meant cutting the state work force or forcing officials to try to pass an unpopular tax increase.
Read more in our daily News Update...