Is re-amortization going to solve Illinois’ pension woes? No. Published by Jane the Actuary View all posts by Jane the Actuary
6 thoughts on “Forbes post, “A ‘Simple Fix’ To Solve Public Pension Funding Woes? Think Again.””
I appreciate your points, but would find it far more helpful to read some truly viable “solutions” whether easy or not. I don’t believe the CTBA plan is all that easy, but the Edgar RAMP is clearly impossible to follow. Given the Supreme Court ruling protecting pensions, what options does the state have other than to find a way to pay off this debt? A change in the state constitution wouldn’t do it, as I understand it, because the same benefits protected by the constitution would also be protected under federal (contract?) law from a retroactive change. Tier II will eventually solve the problem, but only when all (or most of) the Tier I people pass on. If anyone has suggested a legal, viable plan, I haven’t seen it publicized. It’s easy to critique, much harder to offer a solution. If you have ideas, please share.
Why is the generation that did this not paying for it? Why will everyone else be paying for that generation for the rest of their lives? Why is retirement income exempt from income taxes in Illinois?
They don’t want to suffer ANY of the consequences of their own actions.
“Given the Supreme Court ruling protecting pensions, what options does the state have other than to find a way to pay off this debt?”
Change the constitution to get rid of past and future cost of living increases in excess of the increase in the average wage in Illinois.
Tax retirement income.
Eliminate retiree health insurance.
Impose a property tax surcharge that will reduce the value of property when it is sold, reducing the burdens on the younger buyers who didn’t benefit from past pension increases and underfunding.
And get all Illinois public employees in Social Security.