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No. of Recommendations: 2
Illinois's pension system is heading for a meltdown and may now be beyond help. ...... it is now "unfixable."

The problem is worsening so fast that the usual menu of reforms won't be enough to keep public pensions from sucking taxpayers and whole cities into its yawning maw.

The Governor hasn't come up with a plan, but don't despair: He introduced the state's new animated mascot, "Squeezy, the Pension Python," and encouraged voters to talk about the problem over Thanksgiving.

Here's some food for thought. The state estimates its unfunded pension liabilities at around $95 billion. But that rosy scenario is based on the assumption that pension investments earn some 8% a year. In fiscal 2012, the Teachers Retirement System had a 0.76% return, the State Employees Retirement System 0.05%, and the General Assembly Retirement System a negative 0.14%.

The state should immediately end automatic cost-of-living increases, put a cap on how high a salary can be used to calculate a pension and raise the retirement age to 67.

More likely is that the politicians keep abdicating and then hit up President Obama for a federal bailout.


that means you, hayseedian, will be asked to fork up money to pay the public sector unions high pensions and fat cat health care benefits....

I got a better idea! Let's double the income taxes in IL, and tax those rich even more! Let's add a 10% extra charge on those fat cat corporations, and raise the sales tax another 3%. It's only 'fair' to ask the rich to pay 'their fair share'.

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