Friday, July 13, 2012

Pension crisis continues: part 3

Pension holiday? Read this--

Pension crisis continues: Dramatic rise in debt for Chicago-area pension plans - "The Chicago Teachers' Pension Fund received the highest percentage of required contributions in 2010. The fund received 81.7 percent of the money it needed that year, about $290 million. Projected budget shortfalls for 2011, however, led CPS to seek a partial pension holiday from the General Assembly, which drastically reduced the amount the district was required to pay into the fund during the next three years. Last year, the teachers' pension fund received $187 million, $400 million less than the amount it should have gotten. When the holiday ends in 2014, the district's pension costs are expected to more than triple to $647.8 million, adding even more stress to the CPS budget. "The school district essentially balanced its budget by borrowing from the pension fund," Msall said. "This kind of legislative manipulation not only damages the pension system but also the education system because while the partial pension holiday provided some budget relief, the cost over the long haul is far greater.""


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