Illinois lawmakers approved a bill to address the state's $100 billion pension debt.
The state has the worst credit rating in the country according to S&P, and its pension crisis was having ripple effects throughout the state. Fitch cited it two weeks ago when it downgraded Chicago's credit rating.
Officials hope the bill, which will among other things raise state workers' retirement age on a sliding scale and introduce a 401(k) option, can save $160 billion over 30 years and reduce annual pension payments by up to $1.5 billion.
But some have cast the measure the bill as an inadequate stopgap. In a lengthy op-ed Friday, Citadel CEO Ken Griffin, a Republican, called it "a fiscal death sentence."
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1 comment:
No one, including the political class can predict what will happen 3 years done the road, let alone 30 years. False promises that the public pays for. Pay as you go. Give the workers a cash payout year end based on economic factors, and offer incentives, real incentives based on real results. You rob peter to pay paul for twenty years, it all comes home to roost.
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