State retirement systems paying buyouts, see potential savings from Tier II benefits – Center Square

“We’ve paid 2,158 retirees a little over $243 million as part of the [cost of living allocation] buyout program,” said Tim Blair, director of the State Retirement System. The state borrowed to cover those costs, but Blair said it saves more than $300 million in liabilities.
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nixit
2 years ago

Please tell me they’re tracking date of death for anyone taking the buyout. It’s going to take yeas, but knowing the mortality rate of anyone taking the buyout will be key into how we judge the program’s performance.

If pension history is any indicator, pensioners almost always profit from whatever incentive the pension systems throw at them: 2.2 service year buyout, ERI, etc. I mean, you wouldn’t take these options unless you made more money by doing so.

James
2 years ago
Reply to  nixit

The pension buyout option clearly advantages those who are predicted to have a shorter life span, but that’s not a secret to those who chose to offer it either. So, what’s your point?

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Ted joined Tom Miller of WJPF to talk about the details of Gov. Pritzker’s proposed $52 billion budget, why the state is struggling now that federal covid dollars have run out, the controversy surrounding Tier 2 government pensions, why Illinois’ expensive education system fails to teach children to read, the outrageous demands of the Chicago Teachers Union, and more.

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