Posted in Pensions

Chicago Sees Pension Crisis Drawing Near

Beneath the signs of recovery is one of the most poorly funded pension systems in the nation, threatening to challenge the city’s finances for years to come. From The New York Times: Chicago Sees Pension Crisis Drawing Near By MONICA DAVEY and MARY WILLIAMS WALSH CHICAGO — Corporations are moving in, and housing prices […]

Talking Points for HB3303

History 1986 Federal Government institutes Thrift savings plan – a 401K style pension plan for Federal employees. Private companies for the last 3 decades have largely transitioned to 401K plans for workers. Why – Defined Benefit plans are unaffordable.  In fact, companies have filed bankruptcy to get out from under their DB contracts. In Illinois […]

Pension Reform Q&A from Conference Call

  1.        “Provides that no additional service credit may be accrued….” Does this mean that the years of service used for pension calculation are frozen at what they are when the bill passes? Is this equitable for an employee with 5 years of service versus one with 25 years of service?   Yes. The years […]

Pension Reform

Virtually everyone agrees that Illinois needs to do something about its massive unfunded pension liabilities, which total more than $200 billion. For too long, politicians have been all too willing to kick the can down the road and let the problem build and build, rather than confronting it with meaningful reform.   Now, several pension […]