tag:blogger.com,1999:blog-2607144762948150931.post7969841416117116099..comments2023-06-27T08:39:54.324-07:00Comments on Pension Vocabulary : From Ralph Martire of the CTBA: Finding Revenue in IllinoisJohn Dillonhttp://www.blogger.com/profile/10516552420300264491noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2607144762948150931.post-45423757096197705392015-06-10T13:38:37.958-07:002015-06-10T13:38:37.958-07:00I think your new Cover Photo is utterly awesome. V...I think your new Cover Photo is utterly awesome. Very, Very Clever!!!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2607144762948150931.post-58281691214334952212015-06-07T09:31:04.311-07:002015-06-07T09:31:04.311-07:00Most recently on the "goofy debt repayment&qu...Most recently on the "goofy debt repayment":<br /><br />“Starting in 1995, yet another funding plan was implemented by the General Assembly. This one called for the legislature to contribute sufficient funds each year to ensure that its contributions, along with the contributions by or on behalf of members and other income, would meet the cost of maintaining and administering the respective retirement systems on a 90% funded basis in accordance with actuarial recommendations by the end of the 2045 fiscal year. 40 ILCS 5/2-124, 14-131, 15-155, 16-158, 18-131 (West 2012). That plan, however, contained inherent shortcomings which were aggravated by a phased-in 'ramp period' and decisions by the legislature to lower its contributions in 2006 and 2007. As a result, the plan failed to control the State’s growing pension burden. To the contrary, the SEC recently pointed out:<br /><br />“‘The Statutory Funding Plan’s contribution schedule increased the unfunded liability, underfunded the State’s pension obligations, and deferred pension funding. The resulting underfunding of the pension systems (Structural Underfunding) enabled the State to shift the burden associated with its pension costs to the future and, as a result, created significant financial stress and risks for the State.’ SEC order, at 3. That the funding plan would operate in this way did not catch the State off guard. In entering a cease-and-desist order against the State in connection with misrepresentations made by the State with respect to bonds sold to help cover pension expenses, the SEC noted that the State understood the adverse implications of its strategy for the State-funded pension systems and for the financial health of the State. Id. at 10. According to the SEC, the amount of the increase in the State’s unfunded liability over the period between 1996 and 2010 was $57 billion. Id. at 4.5 The SEC order found that ‘[t]he State’s insufficient contributions under the Statutory Funding Plan were the primary driver of this increase, outweighing other causal factors, such as market performance and changes in benefits.’” (Emphasis added.) Id. at 4 (In re PENSION REFORM LITIGATION (Doris Heaton et al., Appellees, v. Pat Quinn, Governor, State of Illinois, et al., Appellants) Opinion filed May 8, 2015, JUSTICE KARMEIER delivered the judgment of the court, with opinion. Chief Justice Garman and Justices Freeman, Thomas, Kilbride, Burke, and Theis concurred in the judgment and opinion).gbrownhttps://www.blogger.com/profile/13435049339082622611noreply@blogger.com