The problem just keeps getting worse--
Pension crisis continues: Dramatic rise in debt for Chicago-area pension plans - chicagotribune.com: "The report also found that dramatic investment losses from 2008 continue to affect the funds' bottom line because they spread investment performance over a three- to five-year period. The average rate of return for the 10 funds reached a low of negative 21.1 percent in 2008. Although investment income has bounced back, hitting an average of 13.5 percent in 2010, the pension crisis is now so severe that it's impossible for the funds to invest their way out of the problem.
Another contributing factor to the financial decline of Chicago-area public pension plans is a decrease in the ratio of active workers to retirees. The Civic Federation found that the ratio dropped from 1.7 active workers for every retiree in 2001 to 1.23 in 2010. That means fewer people are contributing to the funds at a time when the funds need contributions more than ever."
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