Public Pensions Watch IV: the saga continues

[campbell]

...not all of us have subscriptions to P&I. Could you give us an excerpt?

[tommie frazier]

Originally Posted by echo

Proposed Illinois pension reform bill. Looks to me like a solid move in the right direction.

I wonder if it has any chance?

http://www.pionline.com/article/2012...n-reform-bill#

or maybe they want take the title from kentucky?

[campbell]

So here's something:
http://watchdog.org/63774/il-pension...itz-biss-plan/

SPRINGFIELD — Two Illinois pension experts are divided on the merits of a new reform proposal that seeks to cut pension costs but does little to address the state’s pension borrowing issues.

The plan is either a dramatic step toward rescuing the state from financial ruin or a potentially unconstitutional failure that lacks teeth, depending on who you ask.

....
Increases the pension contribution of workers hired before 2011 by 1 percent the first year, 2 percent after that.

....
Increases the retirement age for employee as follows: no increase for those 46 and older, one year for those 40 to 45, three years for those 35 to 39 and five years for those 34 and younger.

....
Cost-of-living adjustments will apply only to the first $25,000 of a worker’s pension ($20,000 for those eligible for Social Security). And they’re delayed until the worker turns 67, or five years after retirement, whichever comes first.

.....
Shifts pension costs from the state back to local school districts at a rate of a half percent of payroll each year.

....
The proposal also includes a guarantee that the state could be sued if it fails to make its required pension payments, and it plans for the state to achieve 100-percent funding of its pension systems in 30 years. It also would require that money used to pay off pension obligation bonds would be used to pay down the unfunded liability once the bonds are paid off.

Go to the link for the reactions of the two people. No surprises.

I've gotten tired of posting about IL pension reform proposals, as they never pass unless meaningless. And that means I think this proposal has no chance in hell of getting passed, unless they figure that all of these will be knocked down in court.

"Hey, we tried"

[echo]

Originally Posted by campbell

...not all of us have subscriptions to P&I. Could you give us an excerpt?

I googled "illinois pension bill" and the pionline was one of the hits. Clicking on the link from google I get the article (for free). If I click the link I posted I don't get the article. Not a very good way to charge for access.

Anyway, below is a paragraph that summarizes the bill, but no mention of the corresponding financial implications. Seems like a material change in the right direction.

From PIONLINE: "House Bill 6258 would increase the retirement age by one to five years for employees hired before 2011, depending on their current age. Contributions would increase two percentage points — one percentage point the first year the legislation is in effect, but not before fiscal year 2014, and an additional percentage point the following year. Cost-of-living adjustments will also apply to only the first $25,000 of a participant's pension, $20,000 for employees eligible for Social Security."

[campbell]

Has anybody seen my eyeballs?

I think they fell out the back of my head when I rolled them...

http://www.youtube.com/watch?v=aPjCj...d&noredirect=1

I so expect pension reform in Illinois because of this.

[campbell]

new thread for the new year

http://www.actuarialoutpost.com/actu...d.php?t=253567