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Illinois’ Pension Debt Balloons To $111 Billion

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http://www.illinoispolicy.org/illinois-pension-debt-still-ballooning/

Pension debt in the Land of Lincoln is a big problem. So big, in fact, that it would take three years of a complete government shutdown, during which the entire general fund went toward pensions, just to break even. No funding for schools, no money for public safety and nothing for health care and human services.

Illinois’ unfunded pension liability grew to more than $111 billion this year, according to official estimates. That’s a $48 billion increase just since 2009.

Unfunded_liabilities_11_17.png

That $111 billion pension shortfall means the state now has only 39 cents of every dollar it should have in the bank today to pay for future benefits. In the private sector, these funds would be deemed bankrupt.

Still all helped along by the helpful Fed. I wonder who'll be the first politician to admit that pensions are actually an elephant in the room, at which point they'll immediately be voted out by people who don't want to here it.

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That $111 billion pension shortfall means the state now has only 39 cents of every dollar it should have in the bank today to pay for future benefits. In the private sector, these funds would be deemed bankrupt.

Isnt it a case that having 39 cents in the dollar in the bank to pay towards pensions, is 39 cents in the dollar more than what our government has towards pensions being as ours are all paid out of current taxation.

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That $111 billion pension shortfall means the state now has only 39 cents of every dollar it should have in the bank today to pay for future benefits. In the private sector, these funds would be deemed bankrupt.

Isnt it a case that having 39 cents in the dollar in the bank to pay towards pensions, is 39 cents in the dollar more than what our government has towards pensions being as ours are all paid out of current taxation.

39 (albeit probably soon to be very devalued) cents on the dollar is still probably a darn lot more than the average private sector worker can hope to get.

If I was a retiring civil servant and they offered me a lump sum of 39c on the $ of what I was hoping to get, given Illinois atrophying number of residents, id bite their hand off.

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Yep, they are better off than us! :D

It's about time somebody invented a machine that you could input things like payments in, payments out, number of participants and life expectancy. You could then work out how much you will have to pay today for your retirement and be bankrupt today rather than wait for 20 years. We could call this new machine a ...... "computer". :lol:

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Sooner or later pensions are going to have to be capped - "Sorry, you didn't make enough contributions during your working life so we're under funded and all pensioners are being capped at £X per year." You could called it "deferred" payments and give people credit notes for the missing amounts and promise that if the fund ever recovers they will be paid, but don't hold your breath.

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