Mark was on with with Dan Proft and Amy Jacobson discussing Wirepoints' new report on the need for comprehensive pension reform, the push for a progressive tax and the potential for a federal bailout for irresponsible states like Illinois.
Wirepoints’ plan immediately cuts the state’s official unfunded pension and retiree health liabilities by over $70 billion, dropping debts to $120 billion from $192 billion. That reduction saves the state an average of $5 billion a year in retirement costs and reduces retirement costs as a share of the state’s budget to 17 percent from 26 percent.
Stopping the growth in accrued pension promises is the only way Illinois can guarantee an end to its public retirement crisis. Wirepoints' reform plan protects state workers’ retirement security and ensures Illinois’ most vulnerable citizens no longer suffer from ever-higher taxes and a lack of core services.
Wirepoints lays out a baseline restructuring for Illinois’ five state-run pension plans and the retiree health insurance plan for state workers. The plan significantly reduces Illinois’ retirement debts, helping Illinois escape its downward spiral. By reforming pensions, we can avoid tax hikes and reestablish a competitive level of services, tax rates and economic growth for Illinois.