Amidst a flurry of reports on the State of Illinois’ inability to solve its ongoing pension crisis and worst bond rating of all 50 states, a new study claims that the State’s $96.8 billion unfunded pension liability poses no risk of default to bondholders. The report, published by the Mercatus Center at George Mason University, compares Illinois’ current financial woes to the last state to default on its bonds, which was Arkansas in 1933. As an example of a highly-rated state, the report…
On this segment, Civic Federation President Laurence Msall joined a panel discussion on the Illinois General Assembly’s failure to enact comprehensive pension reform before adjourning its spring session May 31. The Civic Federation supported Senate Bill 1 as amended in the House, which would put the State on an actuarially-sound path to achieve 100 percent funding in 30 years.
Less than a week after the Illinois General Assembly adjourned its regular spring session without approving reform of the State’s underfunded retirement systems, two of the three major rating agencies have downgraded the State’s bond ratings. Both Fitch Ratings and Moody’s Investors Service cut the State’s rating one level, while Standard and Poor’s issued a statement calling the lack of pension reform, “another missed opportunity.” The General Assembly closed the books on its regular session…
This article discusses the impending expiration of the ‘pension holiday’ granted to Chicago Public Schools by the Illinois General Assembly and the resulting $400 million increase in the District’s required pension contribution for FY2014. In its FY2013 CPS Budget Analysis, the Civic Federation said CPS may no longer be able to afford its current pension system and strongly urged the District to pursue pension reforms that ensure a greater balance of employee, retiree and taxpayer interests.…
Following the General Assembly’s failure to enact comprehensive pension reform before adjourning its spring session on May 31, Illinois’ credit rating was downgraded again by Fitch Rating to A- with a negative outlook from A. The Civic Federation said the continued failure to enact pension reform means that Illinois taxpayers can expect to continue paying more to a government that is providing fewer essential services. Chicago News and Weather | FOX 32 News
As the Illinois General Assembly approached its scheduled adjournment date of May 31, 2013, the State’s pension systems produced new reports estimating the financial impact of proposed pension legislation. The reports by the retirement systems’ actuaries concern two bills—Senate Bill 1, as amended in the House, and Senate Bill 2404—designed to reduce the State’s pension costs by cutting benefits for employees and retirees. Before the reports were issued, potential State savings from the…
The Civic Federation’s Status of Local Pension Funding Fiscal Year 2011 report released May 21 found an aggregate unfunded liability of $32 billion in the ten Chicago-area public employee pension funds analyzed. The funds experienced sharp funding declines in the last decade to an average actuarial funding level of 50.8% in FY2011, down from 80.3% in FY2002.
This article covers the Status of Local Pension Funding Fiscal Year 2011 report released by the Civic Federation May 21. The annual report examining ten Chicago-area public employee pension funds found the total unfunded liability of the funds analyzed rose by 16.7% between FY2010 and FY2011, from $27.4 billion to $32.0 billion.
This week the Civic Federation released its annual Status of Local Pension Funding report. The purpose of this report is to compile and analyze basic financial data of the retirement funds for the City of Chicago (four separate funds – Municipal, Laborers’, Police and Fire), Chicago Park District, Chicago Public Schools (Teachers’ Fund), Cook County, Forest Preserve District of Cook County, Metropolitan Water Reclamation District (MWRD) and Chicago Transit Authority (CTA). [1] The report…
Chicago-area public employee pension funding levels dropped significantly in FY2011, with unfunded liabilities for the ten funds analyzed rising to $32.0 billion from $27.4 billion in FY2010, an increase of 16.7% according to the most recent audited data available. For all pension funds supported by the taxes of Chicago residents, including statewide funds, the total unfunded liabilities reached $16,914 per Chicago resident in FY2011. On average, the ten funds analyzed had an actuarial funding…
