Gov. JB Pritzker recently proposed extending the buyout program at the state level for another two years. It has been extended twice since it was originally signed into law in 2018. Pritzker’s office estimates these payments have reduced the state’s unfunded pension liability by about $2.9 billion and that extending the program through fiscal year 2028 could reduce liabilities by another $1.4 billion.
What is the present value of a pension at age 48 making $100,000 per year with 3% annual increases for 30 years, current treasury 30-year bond is 5% or less. It is really called a growth annuity. It is almost $2,500,000, not bad for 20 to 25 years of work. Want to get rich become a public sector employee (I did not say worker).
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.
What is the present value of a pension at age 48 making $100,000 per year with 3% annual increases for 30 years, current treasury 30-year bond is 5% or less. It is really called a growth annuity. It is almost $2,500,000, not bad for 20 to 25 years of work. Want to get rich become a public sector employee (I did not say worker).