Faced with mounting pension costs, the State of Illinois and a number of other states are considering moving away from traditional pension plans. In traditional pension plans, formally called defined benefit (DB) plans, employers are responsible for a specified level of benefits at retirement, typically based on an employee’s earnings, length of service or both. In 401(k)-type plans, formally called defined contribution (DC) plans, employers are responsible for specified contributions but do…
The pension crisis at the City of Chicago is severe. As described here, the City faces two distinct pension crises: two of its four funds are expected to run out of money by the year 2030 while the other two funds are scheduled to be rescued from insolvency but at a very steep cost to the City. Data from the latest audited financial reports of the City’s Police, Fire, Municipal and Laborers’ pension funds shows continued negative trends. Despite strong investment returns in FY2009 and FY2010,…
This report examines the State of Illinois’ operating and capital budgets as enacted for Fiscal Year 2012, which began on July 1, 2011 and ends on June 30, 2012. Despite a major income tax increase implemented in January 2011, the total General Funds deficit is projected to grow in FY2012 and the State continues to deal with its financial problems by delaying payments to vendors and local governments. Read the press release here.
Major Tax Increase, Cuts to Appropriations Did Not Fix State’s Finances (CHICAGO) The Institute for Illinois’ Fiscal Sustainability at the Civic Federation released its analysis of the enacted FY2012 State budget today. The report found that the spending plan will increase Illinois’ total general operating deficit to $5.0 billion by June 2012. The shortfall would be even larger if the State had not significantly underfunded Medicaid costs and business tax refunds. The full 56-page report is…
Civic Federation President Laurence Msall discussed public pensions in Chicago on the "Roe and Roeper" talk show.
Civic Federation President Laurence Msall was interviewed for this news segment that discusses possible changes to a State law that allows some union leaders to base their public pensions on their union salaries.
In this front page story about union leaders who earn City of Chicago pensions based on their union salaries, the Civic Federation is quoted saying that taxpayers should not be called upon to fund pensions that are not based upon work done for the City.
In this news segment about pension fund benefits received by a Chicago Federation of Labor leader and loopholes in the systems allowing employees to receive multiple pension benefits, Civic Federation President Laurence Msall says that violations of the law must be investigated.
This article is about the Civic Federation’s analysis of Chicago Public Schools $5.9 billion FY2012 budget proposal. It examines the Federation’s recommendations for reforms to the CPS teacher pension system.
The Civic Federation announced its support for the Chicago Public Schools proposed FY2012 budget in a 82-page analysis released today at civicfed.org. Although supporting the CPS’s proposed $5.9 billion spending plan for the coming school year, the Federation expresses strong concern about the District’s longer term fiscal health. CPS must begin work immediately on a long-term financial plan that will guide structural changes to spending and pensions in order to avoid fiscal calamity in the…
