“These modifications to pension benefits unquestionably diminish the value of the retirement annuities the members…were promised when they joined the pension system. Accordingly, based on the plain language of the Act, these annuity-reducing provisions contravene the pension protection clause’s absolute prohibition against diminishment of pension benefits and exceed the General Assembly’s authority,” the ruling states.
Am afraid that has already happened. The Illinois teachers pension plan is only 41.5% funded, with a shortage of $65 Billion. Am not sure whether current pension assessments even covers the interest on this debt.It's not pretty - but at some point, the rubber must meet the road.
-ERD50
Am afraid that has already happened. The Illinois teachers pension plan is only 41.5% funded, with a shortage of $65 Billion. Am not sure whether current pension assessments even covers the interest on this debt.
The alternate plans that have been presented to resolve the shortages... AT BEST... do not begin to address the deficit. ...
Many feel that the future of education in Illinois is at risk, as teaching positions become less desirable, and recent hirees may not get from the plan, even the amount they have paid in.
It's not going to be a pretty picture in the future when suddenly government workers' salaries are cut by 50%. It's bound to happen sooner than later, unfortunately.
The IL Constitution says these pensions must be paid, 'funded' or not. So if they aren't funded, they take it out of current taxes and/or borrow more.
Now, with even more pensions needing relief, it could rest on residents who are already among the highest-taxed in the nation. Recent tax surveys found Illinois to have the second-highest tax rate in the nation, .05 percent behind New Jersey. But that study was conducted before the recent tax hike. A second massive increase could find Illinois with the less-than-honorable distinction of being the highest-taxed state, a label that does not bode well with also being rated among the worst-performing states economically and holding the worst credit rating.
Moody’s Investors Service, one of the credit rating agencies, has already given the city’s bond status as junk, warned of more downgrades if the city does not come up with “an alternate plan to fund non-public safety pensions should the Illinois Supreme Court rule the city’s 2014 reform statute unconstitutional.”
All of this just looks like another reason to live in Texas.
Please, no naked links. A snippet or short summary, in you don't mind.
Please, no naked links. A snippet or short summary, in you don't mind.
Thanks.done - fleeing to Texas isn't a panacea, just sayin...
Texas has outrageous property taxes, partially in lieu of state income taxes.
My best friend lives in Highland Park (N. Dallas), and when his property taxes hit $50K, he sold his house and rented a luxury apartment.