State legislators are locked in last minute negotiations to reform the impoverished pension system before the end of the legislative session. (January 7, 2013) – Full funding should not be the goal of an overhaul of Illinois’ public retirement system, which is one of the worst funded in the United States. “One-hundred-percent funding is impossible,” state Senator Pam Althoff told Fox. “As much as anyone would like to fully fund the pension systems, it is just not practical and impossible to implement.” Illinois Governor Pat Quinn has made pension reform lawmakers’ highest priority as they enter the final stretch of a lame-duck legislative session. A report from the state’s Auditor General, released on January 31, 2012, recommends that based on “generally accepted actuarial standards, the funding method [for Illinois’ pensions] should be based as a minimum on achieving 100% funding within 30 years.” CIO MagDunno how financial managers in government become so stupid. Any fixed payment system with an infinite time horizon requires occasional updates. Only Keynesians and the stupid fail to realize this.
Monday, January 7, 2013
Posted by Matt Young at 12:21 PM