30 07, 2015

Illinois Court Strikes Down Chicago Pension Reforms, Deepening City’s Financial Crisis

2015-07-30T20:47:25-07:00July 30th, 2015|Categories: Pension Reform|Tags: , |

On July 24, 2015, Judge Rita M. Novak of the Circuit Court of Cook County, Illinois struck down recently enacted legislation designed to shore up two of the City of Chicago’s severely underfunded pension plans by, among other things, reducing benefits. Judge Novak viewed as controlling a decision by the Illinois Supreme Court from May of this year which held that similar legislation reducing benefits for members of state-funded pension plans violated the “pension protection clause” of the Illinois constitution.  [...]

10 02, 2015

Turning Illinois public employee pensions into a 401(k)-style system is a bad idea

2015-02-10T22:52:36-08:00February 10th, 2015|Categories: Defined Benefit Plans|Tags: , , |

Illinois public employee pensions shouldn’t be lost to politicians’ bad judgment. It’s not just basic finance, it’s common sense: A large pool of money invested by professionals will yield far greater returns than small, separate accounts managed by individuals with no professional training in finance. So why do some think that ending Illinois’ defined benefit pension system and moving workers into privatized, 401(k)-style accounts is a good idea? […]

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