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* Center Square…
House Bill 4098 would allow the Illinois treasurer and comptroller to transfer $500 million from the General Revenue Fund to the Pension Unfunded Liability Reduction Fund each fiscal year. The funds would be used for making additional contributions to the pension funds for retired state employees. The current budget already spends around $10 billion this year on pensions. That accounts for around one out of every five dollars the state takes in taxes.
The House Personnel & Pensions Committee discussed HB4908 Wednesday in downtown Chicago along with officials from the Teachers’ Retirement System and State Employees’ Retirement System.
Not quite right.
* From the bill…
Every fiscal year after all the bonds authorized by Public Act 93-2 are retired, the State Treasurer shall direct and the State Comptroller shall transfer the sum of $500,000,000 from the General Revenue Fund to the Pension Unfunded Liability Reduction Fund each fiscal year, which shall be used to make additional contributions to eligible pension funds in accordance with Section 8s of the State Finance Act.
I checked with the sponsor, Rep. Stephanie Kifowit, and she said those annual $500 million payments wouldn’t begin until 2031, eight years from now.
* The Question: Do you support this concept? Explain.
posted by Rich Miller
Thursday, Jul 20, 23 @ 1:34 pm
Sorry, comments are closed at this time.
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I know, I won’t feed the hyperventilating troll.
:)
To the question?
Since Center Square “surprisingly” was inaccurate…
… in 2031, yeah, I can go along with aiding the ramp payment aspect by these additional monies. I don’t know what things will look like in 8 years, nor will I speculate on such a thing, but if the ask is to increase payments as constituted or “set up”, yeah, ok.
But… we’ll see.
Comment by Oswego Willy Thursday, Jul 20, 23 @ 1:54 pm
Some People: “Government should be run more like a business.”
Same People: “Government should welch on its debts.”
Seems inconsistent…until you stop and think about it. These folks are just mad that no matter how hard they try to break state government to prove it is not working, Democrats find a way.
Comment by Thomas Paine Thursday, Jul 20, 23 @ 2:07 pm
Yes, in fact I think each taxpayer other than pensioners or future pensioners should each be required to pay an additional amount of at least $1,000 toward the pensions each year. /s
In all seriousness, Yes paying down debt is legal and responsible.
Comment by JS Mill Thursday, Jul 20, 23 @ 2:14 pm
I think it’s good… but doesn’t have to wait until 2031 if the dollars are there.
Comment by Lincoln Lad Thursday, Jul 20, 23 @ 2:17 pm
===hyperventilating troll===
You mean the first-time commenter from Ashburn, Virginia who believes obligations should be funded with magic? Gone.
Comment by Rich Miller Thursday, Jul 20, 23 @ 2:25 pm
Money into the funds from anywhere is a plus and this gimmick is no exception.
We did not get to be the most poorly funded pension funds in the USA without a lack of focus by employee and citizen representatives. Also the acceptance of poor performance of the funds helped poorly performing money managers and consultants earn a wonderful living also played a role in the current problem.
One item that is seldom commented on is the role the Board picked actuaries play in this mess.
For example, when the Municipal League lobbyist pushed for consolidation it was a big selling point that local taxpayers would see lower tax bills. The current actuarial target for the Firefighters fund, where the lobbyist Brad Cole is a member and now is President, has an actuarial target using an estimated return of 7.3%. This should result in lower taxes as the assumption is much higher than local actuarial assumptions local boards used and is higher than any other state board. If the returns are less then the underfunded level goes up. In essence the problem gets worse.
One step in the right direction would be to have the vendor applicants for contracts with state boards disclose any contributions they made to organizations that have employees, like lobbyists who vote on these contracts. A little light on the contracting process may go a long way to improving the quality of the contractor base as well as expose possible conflicts of interest among board members.
Of course, any money addition is good, but transparency in the contracting process in terms of cash (or check) payments to organizations that have employees or board members who are voting trustees of State Boards just might be a better step than just having taxpayers kick in more and more money.
Let’s have the GA require more transparency as part of any attempt at giving the problem.
Comment by Back to the Future Thursday, Jul 20, 23 @ 2:41 pm
===doesn’t have to wait until 2031 if the dollars are there===
They aren’t.
Comment by Rich Miller Thursday, Jul 20, 23 @ 2:47 pm
Yes, as the state has been paying bills, and meeting obligations, if there’s still money left, pay down the debt.
Comment by Ashland Adam Thursday, Jul 20, 23 @ 3:01 pm
- Rep. Stephanie Kifowit, and she said those annual $500 million payments wouldn’t begin until 2031, eight years from now. -
Fittin’ to pay.
Comment by Dotnonymous x Thursday, Jul 20, 23 @ 4:02 pm
Extra money into the funds never hurts. Depending on performance, may slightly lower the ramp years out.
Comment by RNUG Friday, Jul 21, 23 @ 12:16 am