Path to Illinois pension reform now even trickier

SPRINGFIELD, Ill. (AP) — Illinois Gov. Pat Quinn had claimed he was "put on earth" to solve the nation's worst pension crisis, but the goal eluded him once again as lawmakers adjourned their session without addressing the $100 billion burden on the state's struggling economy.

On a marathon final day when several other key measures were approved, including a compromise on concealed weapons, lawmakers couldn't find common ground on an issue that the governor and fellow Democrats who lead the Legislature labeled as the session's top priority. They even turned aside a relatively minor fix that would have chipped away at the problem by getting state universities and community colleges to pay their own retirement costs.
"The biggest supermajorities in modern history, the biggest issue facing the people of Illinois in a generation and you failed to deliver," said Sen. Matt Murphy, a Palatine Republican. "... The governor is going to bring Squeezy out again tomorrow because you guys couldn't figure out how to communicate with a supermajority of the same party on the other side of the building."

Lawmakers spent the final days of session approving medical marijuana; a deal on hydraulic fracturing, or "fracking;" a method for legalizing the carrying of concealed guns; and a historic expansion of Medicaid, a key part of President Barack Obama's health care law.

They also sent Quinn a new $35.4 billion general revenue fund budget that avoids cuts to education for the first time in several years. But they had nothing to show for on pensions, legalizing gay marriage or expanding gambling.
Senate President John Cullerton, whose chamber did approve same-sex marriage and a gambling plan, was at a loss to explain where lawmakers can go from here after years of discussing, studying, and railing against the pension crisis.

"I've tried everything," the Chicago Democrat said. "You're fighting unions and you're fighting the business community at the same time. And that's what's so difficult. I'm trying to thread the needle."

Cullerton and House Speaker Michael Madigan each had their own pension plans that they passed and sent to the other chamber. Cullerton noted he sponsored the Madigan plan and called it for a vote, but it failed 16-42.
After years of state underfunding and skipped or shorted payments, Illinois' five public employee retirement systems are about $97 billion short of what's needed to pay benefits as currently promised. The full annual payment in 2014 will be about $6 billion — nearly one-fifth of the state's general revenue fund.

gonna be fun!

http://laborpains.org/2013/04/09/the-next-great-bailout-teamsters-pensions/

The Next Great Bailout: Teamsters Pensions?

The Wall Street Journal reports on what might be the next great federal bailout. The Teamsters Union Central States pension fund has been in trouble for some time—UPS pulled out of the fund in 2009—but now it’s advancing towards a point of no return.

It seems the Teamsters Union’s Central States pension fund is going bust fast, with companies like Republic Services pulling their employees from the fund. The Journal notes:

Investment losses during the financial crisis and hard times for trucking companies that pay into the Teamsters’ Central States Funds have sapped the fund of money it uses to pay promised benefits.

With just 60 cents of assets for every $1 in obligations, the Teamsters pension fund is considered in “critical” status by the Pension Benefit Guaranty Corp., the federal agency that backstops failed pensions.

You read that right: “backstops.” If the Central States fund goes bust, taxpayers could be on the hook. And how deep is the sea of red that drowns the fund’s ledger? The Journal continues:

The pension plan pays about $2.8 billion in benefits a year but takes in only about $700 million in employer contributions. “You have to make up the rest with investment returns,” said Mr. Nyhan, which he thinks is unlikely over the long term.

Companies are trying to preserve their employees’ retirements by trying to reform pensions. Unions want employees trapped in these dying funds.

Mismanagement?
Can't blame Hoffa.

you mean the Elder,or the Younger?
The Elder is well preserved under feet of Concrete somewhere along the Jersey Turnpike!

The older fart

well,he farted his last Fart,that one!
_______________

On February 20, 2008, Hoffa became the first major union leader to endorse Senator Barack Obama (D-IL) in his bid for President of the United States.[37] Hoffa campaigned in major states for Obama throughout the primary and general election. He served as a superdelegate to the 2008 Democratic National Convention[37] in Denver and a member of the Michigan Electoral College.[38][39]

Interesting!
Seems to deserve Payback!

Lawmakers who are both Republican and Democrat can not balance the budget. Mismanagement of Funds is what is causing Illinois debt.

and years of union greed and corruption paying off democrat cronies.