Wednesday, November 14, 2012

Illinois Pension Crisis

Kick the can all you want--this problem isn't just going to "go away"--

The pension chasm - Illinois Issues - A Publication of the University of Illinois at Springfield - UIS:" . . . Moreover, many private sector employers no longer offer defined benefit plans, in which retirees are promised a certain amount for life, but instead offer defined contribution plans, in which the company agrees to contribute a certain sum each year into an employee’s retirement savings account. “A substantial disparity thus exists between pension benefits generally available in the private sector and the state’s pension plans,” Martin wrote in the minority report. “This disparity should not continue, for two reasons. First, the state cannot afford it. Second, maintaining such a disparity is unfair to taxpayers — who largely work in the private sector — who must pay higher taxes to support the more generous and more costly benefits provided to the state’s employees.”

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