This is what I was talking about yesterday.
Gov. Rod Blagojevich’s plan to save money by changing pension benefits for state employees is “very risky,” the director of the State University Retirement System told lawmakers Thursday.
James Hacking said the plan assumes there will be long-term savings the state can divert to other expenses immediately. But if some of the revisions change in the future - for example, if the courts strike down certain aspects - the pension systems could be worse off than they are now, he said.
“We are spending the savings before it accrues,” Hacking told members of the General Assembly’s Commission on Government Forecasting and Accountability. “There is no room for error whatsoever. It is a very risky program.”
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