Wednesday, July 10, 2013

Public Pension Problem Swamps Illinois

In Illinois (which has the largest net pension liability in the US), "denial" is apparently the "plan" to deal with the unfunded public pension liabilities--

Public pension costs swamp revenues of 10 U.S. states -Moody's | Reuters: "Ten U.S. states have public pension liabilities that are at least as big as their annual revenues, according to a Moody's Investors Service report released on Thursday that found the Illinois pension bill was equal to 241 percent of its revenues. . . . . Illinois is notorious for both its underfunded retirement system and the political battles over how to fix it. In March, the state settled Securities and Exchange Commission fraud charges for allegedly misrepresenting the depth of its pension problems. According to Moody's, Illinois has the largest net pension liability in the country, $133 billion, equal to $10,340 per person in the state . . . California had the second highest pension liability, $120 billion, but that is only $3,206 per capita in the state, which ranks as the country's most populous." (Read more at link above)

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