The State of Illinois’ largest pension fund recently revised several key assumptions that affect the fund’s financial condition and the contributions that must be made by the State under Illinois law. As discussed here, the Board of Trustees of the Teachers’ Retirement System (TRS) approved the changes at a meeting on September 21, 2012. The most significant and widely reported change was a reduction in the assumed rate of return on investment to 8.0% from 8.5%, a decision that increases…
Trend analysis performed by the Civic Federation shows that the funded status of the Cook County Pension Fund fell again in fiscal year 2011, the most recent year for which data are available. The actuarial funded ratio for the County pension fund fell to 57.5% in FY2011 from 77.3% in FY2007. The fund was over 90% funded as recently as FY2000. Funded ratio is one of the three main indicators of pension fund fiscal health the Civic Federation uses to evaluate state and local retirement funds.…
Chicago aldermen are meeting October 1 for a six-hour session detailing the City’s pension funding crisis. The Civic Federation said fixing the broken system will require shared sacrifice from taxpayers, retirees and current employees, even with the significant reforms called for by Mayor Rahm Emanuel and Governor Pat Quinn.
Officials from the City of Chicago’s five public employee pension funds will brief aldermen on the state of the plans at an October 1st meeting of the City Council’s Workforce Development and Audit Committee.. The Civic Federation said Springfield has so far made little progress on urgently needed pension reforms. The Federation’s latest Status of Local Pension Funding report shows a sharp financial decline of Chicago-area public employee pension funds.
The State’s largest retirement system voted on September 21, 2012 to reduce its assumed rate of return on investment, a decision that will increase the annual State contribution required by law beginning in FY2014. The Board of Trustees of the Teachers’ Retirement System (TRS) voted 11 to 2 to reduce the assumed rate of return to 8% from 8.5%, according to a news release. As discussed here, a consultant recommended in August 2012 that TRS lower the rate to either 8.25%, 8% or 7.75%. According…
Since 1988, the City of Chicago and its four pension funds have been party to the settlement of City of Chicago v. Korshak regarding how much the City, the funds and annuitants pay for healthcare. The settlement agreement expires June 30, 2013. The four pension funds are the Firemen’s Annuity and Benefit Fund; the Chicago Policemen’s Annuity and Benefit Fund; the Municipal Employees, Officers and Official Annuity and Benefit Fund and the Laborers’ and Retirement Board Employees’ Annuity and…
This editorial discusses the ongoing struggle many governments face in trying to fund benefits for public-sector employees without cutting public services. The piece stresses the urgency of addressing unsustainable pension costs, citing Illinois’ $83 billion unfunded pension liability and the Civic Federation’s calculation that the State’s pension costs will consume 22 percent of State-source general operating revenue in FY2013.
This article covers the ongoing pension crisis in Illinois and the continued rise in pension costs while lawmakers stall on a solution. It cites a Civic Federation blog post that shows the share of State revenue used for pension costs has risen from 3.6% in FY1996 to 22.0% in FY2013. Civic Federation President Laurence Msall said it is irresponsible to let this crisis continue.
This Tribune editorial focuses on the temporary personal and corporate income tax increases enacted in Illinois in 2011, which are currently scheduled to partially sunset on January 1, 2015. The Civic Federation said the State’s budget is overwhelmed by its growing pension burden.
The State’s largest retirement system postponed until September a decision on whether to reduce the system’s assumed rate of return on investment — a decision that could result in an increase in the annual State contribution required by law. As discussed here, on August 23, 2012 the Board of Trustees of the Teachers’ Retirement System (TRS) considered a consultant’s recommendation to lower the assumed annual investment rate of return from 8.5% to either 8.25%, 8% or 7.75%. According to a news…
