It’s going to take much of the East Coast a while to dig out from the blizzard of 2016, but they will. It will be much harder, however, for Illinois to dig out from its unfunded pension liability, which the office of Illinois Auditor General William G. Holland reports has worsened further.
Another $1.7 billion in unfunded pension liability was tacked on in 2015, the Illinois News Network says Holland’s office has reported. And that liability now amounts to $113 billion for Illinois’ five pension funds, with the funding ratio falling by 1 percentage point last year to 41.9%.
Members of the state legislature from both sides of the aisle agree that addressing the state’s unfunded pension liability is urgent, the Illinois News Network says, with Rep. Mike Zalewski (D-Riverside) and Rep. Tom Morrison (R-Palatine) lamenting that the legislature has not taken strong action yet.
But while they agree that something must be done, there is less accord regarding what exactly that should be. Zalewski reportedly advocates dedicating a revenue stream to the state’s pension plans, which Morrison supports changing the General Assembly Retirement System to a defined contribution model, which he argues would help boost support for other steps to reform the state pension systems. He also reportedly has suggested that a DC plan be created for new state employees and that amending the state constitution may be necessary.
Another $1.7 billion in unfunded pension liability was tacked on in 2015, the Illinois News Network says Holland’s office has reported. And that liability now amounts to $113 billion for Illinois’ five pension funds, with the funding ratio falling by 1 percentage point last year to 41.9%.
Members of the state legislature from both sides of the aisle agree that addressing the state’s unfunded pension liability is urgent, the Illinois News Network says, with Rep. Mike Zalewski (D-Riverside) and Rep. Tom Morrison (R-Palatine) lamenting that the legislature has not taken strong action yet.
But while they agree that something must be done, there is less accord regarding what exactly that should be. Zalewski reportedly advocates dedicating a revenue stream to the state’s pension plans, which Morrison supports changing the General Assembly Retirement System to a defined contribution model, which he argues would help boost support for other steps to reform the state pension systems. He also reportedly has suggested that a DC plan be created for new state employees and that amending the state constitution may be necessary.
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