Wednesday, July 11, 2012

Pension crisis continues: part 1

The problem is not going to go away--

Pension crisis continues: Dramatic rise in debt for Chicago-area pension plans - "Overall, the area's pension debt has grown by an average 24 percent a year. Some funds are in danger of going insolvent in less than a decade, including the firefighters fund and the police pension plan. The firefighters fund has the lowest funding ratio of any local pension plan, with just 32.4 percent of the assets it needs to cover its liabilities. The figure for the police plan is 39.7 percent. "By ignoring this issue for so long, you've guaranteed that any pension reforms will have to be much larger to be effective," Msall said. "Government will have to pay dramatically more or dramatically reduce the actual benefits that will be paid to employees and retirees.""


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