teacher/poet/musician glen brown: The theft of the public employees’ pensions

21 Nov

Many Illinois citizens are aware that state legislators have not fully funded the public pension systems throughout the years; that instead of paying into the pension systems, they have used that money to pay for other services. Thus, without having to pay for services, state legislators have created an enormous pension debt or unfunded liability for the public pension systems in Illinois.

The “Pension Ramp” Public Act 88-0593, or the repayment schedule of 1995, has also greatly increased the total pension debt or unfunded liability and needs to be re-amortized, though legislators continue to ignore this most significant issue.

The pension debt is exorbitant. Depending upon the discount rate and data from a given source, the debt is perhaps between $83 and $130 billion.

A decrease in the chosen discount rate increases the unfunded liability; the Teachers’ Retirement System trustees recently reduced the discount rate by ½ percent. TRS is approximately 41 percent funded its funded ratio using assets at Market value without asset smoothing Commission on Government Forecasting and Accountability, November 2012. More…

via teacher/poet/musician glen brown: The theft of the public employees’ pensions.

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