Saturday, August 25, 2012

Illinois, public unions, and pension liabilities, Pt. 2

Illinois--kicking the can--doomsday looms--

Illinois fails to act on public pensions in special session - " .  . . . Some Illinois lawmakers had warned that lack of action to fix the ailing pension system on Friday could threaten the already low debt ratings of the state. Rating analysts who cover Illinois at Moody's Investors Service, Standard & Poor's Ratings Services and Fitch Ratings did not immediately respond to a request for comment on the Illinois legislature's inaction. The state Senate adjourned on Friday without even voting on any pension measure. The House of Representatives briefly debated a proposed law backed by powerful Speaker Michael Madigan to curb the pensions of state lawmakers, which account for less than 1 percent of the unfunded state liability. It would have saved only a paltry $111 million by 2045, according to state budget estimates. While the House narrowly approved an amendment eliminating pensions for new legislators and requiring current legislators to choose between lower cost-of-living increases and state subsidized healthcare in retirement, Madigan did not call for a final vote on the bill and adjourned the session. . . . "

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