Munger again warns of delayed pension payment
Thursday, Oct 6, 2016 - Posted by Rich Miller
* Monique…
Illinois Comptroller Leslie Geissler Munger warned Thursday that continued cash flow problems may once again force a delay in the state making its contribution into the government worker pension systems.
Munger said the state is entering a particularly precarious financial period because tax receipts historically drop in October and November, meaning there is less money on hand to pay bills. While some expenses such as debt payments and those covered by court order automatically go out the door, there is more flexibility when it comes to making the pension payment.
That’s because by law, the state’s contribution into the five employee pension systems must be made on a yearly basis. However, Illinois usually chops those up into smaller monthly installments to make the cost more manageable. That means if a payment is skipped, it must be made up by July 2017. […]
Munger pushed back a $560 million pension payment in October 2015, citing similar financial pressures. The payment eventually was made in April, when state coffers were flush with money from yearly income tax payments.
- Fusion - Thursday, Oct 6, 16 @ 3:39 pm:
We need a tax increase. And there’s no better time to pass one than right after an election. Here’s hoping they increase taxes during veto session.
- AC - Thursday, Oct 6, 16 @ 3:46 pm:
Sounds like “the irresponsible practice of deferring well into the future funding decisions necessary to ensure pension fund solvency”. At least, that’s how Rauner described the rationale for the Chicago pension bill veto. The same principle applies here.
http://www.chicagotribune.com/news/local/politics/ct-illinois-bruce-rauner-rahm-emanuel-pensions-veto-met-20160527-story.html
- wordslinger - Thursday, Oct 6, 16 @ 3:55 pm:
To be clear, the state was square on the full FY16 contribution?
- Rich Miller - Thursday, Oct 6, 16 @ 3:58 pm:
Word, yes.
- Rabid - Thursday, Oct 6, 16 @ 3:58 pm:
First it’s the legislature now it’s the pension, I hope the executive and judicial branch feel the same pain for long term gain
- Anonymous - Thursday, Oct 6, 16 @ 3:59 pm:
The delay in pension payments could result in an increase of interest due.
- wordslinger - Thursday, Oct 6, 16 @ 4:02 pm:
thanks
- Annonin - Thursday, Oct 6, 16 @ 4:25 pm:
Did anyone ask if Wingman just endorsed the back of her check from Mr. ReBoot or did she have to write a whole new check to ILGOP….
- HRC2016 - Thursday, Oct 6, 16 @ 4:43 pm:
Delaying pension payments is the reason we’re in the mess we have today. At least Governor Quinn attempted to make the payments.
- Oswego Willy - Thursday, Oct 6, 16 @ 4:47 pm:
Rauner has made perfectly clear…
Revenue (while not remotely a give, but a necessity) will only be considered when reforms, any winnable reforms, are attached. Any means any, not just Labor.
This ultimatum doesn’t change the fact that this delay is being done by a lack of revenue existing, and reducing the income tax didn’t help and hasn’t help this entire time.
- Anonymous - Thursday, Oct 6, 16 @ 5:25 pm:
And this is all the fault of public workers because…………..
- Flapdoodle - Thursday, Oct 6, 16 @ 6:37 pm:
I’m fixin’ to retire from a state university this year or next, and I am so glad I’m in the self-managed plan because I will take a lump sum payout on my Illinois account and roll it over into another one just as fast as I can . . . .
- thoughts matter - Thursday, Oct 6, 16 @ 7:07 pm:
Is Munger still not being paid? Because, if she is, then maybe the legislators should return the favor on her proposal not to pay them. No pension payment, no paycheck.
- Anonymous - Thursday, Oct 6, 16 @ 7:36 pm:
Maybe the Comptroller noted that expenses exceed revenue and an increase in revenue is a necessity, not a luxury?
(Crickets)
- blue dog dem - Thursday, Oct 6, 16 @ 8:27 pm:
Cuts need to equal tax increaseS. If Madigan and Rauner don’t have the stomach for it. Old Blue is up to the task.
- Anonymous - Thursday, Oct 6, 16 @ 9:19 pm:
Is this the’grand plan’? “We’ve got’em where we want’em?” If so, they should re-examine the effect of the on-coming storm ‘Hillary’. Presidential storms blow away local messaging. Always has, always will.
- Just Me - Thursday, Oct 6, 16 @ 10:30 pm:
The silence from Mendoza is deafening.
- Chucktownian - Friday, Oct 7, 16 @ 7:15 am:
The governor is spending all of this money on elections…the most money spent on state legislative elections in the U.S. And they’re still going to get buried. Rauner should just donate it to the state instead. It would be a better use for it.
- PublicServant - Friday, Oct 7, 16 @ 8:03 am:
When we pass the Millionaire’s Surcharge, he won’t have a choice, Chuck.
- Fusion - Friday, Oct 7, 16 @ 8:44 am:
==Delaying pension payments is the reason we’re in the mess we have today.==
Right, but what money do you suggest she pays the pensions with? There is not enough money to go around. Thus, the need for a tax increase.
==Is Munger still not being paid?==
Paychecks for constitutional officers and GA members are both in the queue, just like the vendors.
- wordslinger - Friday, Oct 7, 16 @ 9:07 am:
– The queue–
That suggests bills are being paid, when funds are available, in the order they were presented, without any subjective influence or judgement.
I doubt it. Why would you need a comptroller to do that?
- Fusion - Friday, Oct 7, 16 @ 9:18 am:
From Monique: ==While some expenses such as debt payments and those covered by court order automatically go out the door, there is more flexibility when it comes to making the pension payment.==
Her piece also said that receipts drop in October and November. So I doubt it has much to do with “subjective influence or judgement” and more to do with following laws and court orders.