Remember most of the contributions to teacher accounts are paid for by pension pickups. Here in Rockford pickup is 100%. What are the pension management fees for the $665M. The fees come right off the top thus reducing total funding levels as do Tier 1 retirees prior to 2010 who could spike the sky. According to Ballotpedia in 2012 pension fees on $53B in assets were 0.55% or approx $313M returning only 0.7%. They are somewhat better now. If fees were cut in half taxpayers could save over $150M/yr. Alabama had about 1/2 the assets in 2012 with fees of… Read more »
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.
Remember most of the contributions to teacher accounts are paid for by pension pickups. Here in Rockford pickup is 100%. What are the pension management fees for the $665M. The fees come right off the top thus reducing total funding levels as do Tier 1 retirees prior to 2010 who could spike the sky. According to Ballotpedia in 2012 pension fees on $53B in assets were 0.55% or approx $313M returning only 0.7%. They are somewhat better now. If fees were cut in half taxpayers could save over $150M/yr. Alabama had about 1/2 the assets in 2012 with fees of… Read more »