Don’t hold your breath for $500 million in savings from Tier III pension reform – Quicktake

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jaherzrent
6 years ago

Offering a lump sum option to Tier One pensioners would quickly result in the plan bucket being empty. Watch solidarity crumble as people rush to the exits. I bet the system could offer lump sums at a 25% discount from the present value of the pension annuity, and people would still rush to the exits. In fact, the system should put out an offer such as “how low will you go” and cash out those who are willing to take the biggest haircut. That’s the way to reel in that can down the road.

Advocate
6 years ago

When Tier 2 has neutered pensions in Illinois below the benefit level of Social Security….and it has… the call for new DB plans is piling on a dead horse. Ive been saying this, here on wirepoints, for years. Unless ya honestly want to help public labor obtain portability over their retirement, at a higher cost to taxpayers. DB plans will only add costs and not save. This portability feature was oft cited for a reason to switch to DB plans…still is… but now, FINALLY, when its realized this DB portability would only help public labor, and would hurt the States… Read more »

Steve-Oh
6 years ago

Mark: That’s a remarkable way to state the disaster, “DB pensions for govt ees are opaque, easily corrupted and incompatible with an informed democracy”.
Brilliant….. I’ll remember that !
Cheers “PF” brother !

Bross
6 years ago

Taxpayers should expect much more from our elected officials. Sadly we end up with very little to solve the really big problems.

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A statewide concern: Illinois’ population decline outpaces neighboring states – Wirepoints on ABC20 Champaign

“We are not in good shape” Wirepoints’ Ted Dabrowski told ABC 20 Champaign during a segment on Illinois’ latest population losses. Illinois was one of just three states to shrink in the 2010-2020 period and has lost another 300,000 people since then. Ted says things need to change. “It’s too expensive to live here, there aren’t enough good jobs and nobody trusts the government anymore. There’s just other places to go where you can be more satisfied.”

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