It's not just funding. Wisconsin's public pension system, unique among not just public pensions but among any defined benefit pension in the United States, is designed to share risks between participants and the state, through two key mechanisms.
Yes, and not one word in the article acknowledging that Wisconsin pays into Social Security while Illnois, for the vast majority of its employees, does not. Add in the 6.2% of wages that Wisconsin pays into SS and that state ends up contributing nearly 14% of salary to its fully funded plan – more than the normal cost in Illinois, i.e. the amount the state would have to pay if the pensions had not been underfunded in the past. Apples vs. apples please.
You forgot to subtract the 6.2% employER portion of social security from the gross wages employees are paid. That contribution is used to calculate your salary. Also, using Wisconsin’s service multipliers, one would have to work 42-46 years to reach 75% pension vesting, not 34 as they do here.
Andrew – How about these apples: Would teachers/university/state workers be willing to take that pay cut I mentioned, contribute to social security themselves, AND work an extra 8-12 years to reach full vesting? Guessing no.
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
Yes, and not one word in the article acknowledging that Wisconsin pays into Social Security while Illnois, for the vast majority of its employees, does not. Add in the 6.2% of wages that Wisconsin pays into SS and that state ends up contributing nearly 14% of salary to its fully funded plan – more than the normal cost in Illinois, i.e. the amount the state would have to pay if the pensions had not been underfunded in the past. Apples vs. apples please.
You forgot to subtract the 6.2% employER portion of social security from the gross wages employees are paid. That contribution is used to calculate your salary. Also, using Wisconsin’s service multipliers, one would have to work 42-46 years to reach 75% pension vesting, not 34 as they do here.
Andrew – How about these apples: Would teachers/university/state workers be willing to take that pay cut I mentioned, contribute to social security themselves, AND work an extra 8-12 years to reach full vesting? Guessing no.