In a post on its website the Civic Federation of Chicago says that, while sponsors of the bill estimated state taxpayers would have to contribute $1.2 billion less than previously required when the new [pension reform] law is fully implemented in 2016, the latest figures from Gov. Pat Quinn’s office come in more than a half-billion dollars short of that.
Specifically, the latest statements from pension fund actuaries indicate that “approximately $673 million” less in taxpayer funds will be needed in fiscal 2016, the report says. That’s more than $500 million short of the earlier estimated reduction of $1.2 billion.
In the report and in a statement, federation President Laurance Msall said some of that $500 million difference is due to improved investment returns by pension funds in the past year. With the stock market soaring, returns are up and therefore the amount of new money needed from taxpayers can be reduced.
But, even excluding that, the latest actuarial estimates in the Quinn report are $200 million different than the estimates offered by sponsors of the reform legislation, Mr. Msall said.
* Meanwhile, this argument sounds familiar to me…
Oh, yeah, now I remember.
It’s the same basic argument used by those who said legislators screwed up by not funding the pension systems, so pensioners should not be forced to solve the problem on their own.
Reboot and others argued forcefully against that logic. Regardless of past mistakes by the GA, pensioners should shoulder the burden.