
The ‘Tier 2’ Pension Mess in Illinois – WP Original
By: Mark Glennon* Updated 1/16/15 As if Illinois public pensions don’t have enough problems, it’s becoming evermore apparent that the Tier 2 reforms enacted in 2010 are a mess. Some background: In 2010 Illinois created a second, lower level of pension beneficiaries for all state and local pensions, except for several Chicago pensions. Employees hired after 2010 became Tier 2 pension participants with far lower benefits. Tier 1 employees who started before that kept the same, more generous benefits they had before. The state’s unfunded pension liability, officially about $106 billion and in truth more like $250 billion, was