Illinois' $97 billion unfunded pension liability - among the largest in the nation - was apparently decades in the making. "Of principle concern to the Commission is the accumulation of large unfunded accrued liabilities resulting for the most part from the inadequacy of government contributions in prior years to meet increases in costs due to the upward trend in salary rates and large additions to the membership of the funds," the Illinois Public Employees Pension Laws Commission stated in a report to then-Gov. William Stratton - in 1959. A letter from the State Universities Retirement System to delegates of the state's 1970 Constitutional Convention indicated the state's public employee pensions were already running a debt in 1946 and that lawmakers had failed to take action to keep the pension system from falling further into the red. "Despite this legislative mandate for stabilization of the past service liabilities, the General Assembly refused to appropriate the necessary funds to meet this requirement during the 1969 and 1970 legislative sessions," the letter said. Laurence Msall, president of the Civic Federation of Chicago, summed up the matter simply. "What has happened is a culture and a willingness by past governors and General Assemblies to take a very short-term perspective on the costs of underfunding the pension systems," he said. "It was easier to underfund pensions than not fund other programs." (STATE JOURNAL-REGISTER [SPRINGFIELD])
The above article is provided by the State Net Capitol Journal. State Net is the nation's leading source of state legislative and regulatory content for all states within the United States. State Net daily monitors every bill in all 50 states, the District of Columbia and the United States Congress - as well as every state agency regulation. Virtually all of the information about individual bills and their progress through legislatures is online within 24 hours of public availability.
If you are a lexis.com subscriber, you can access State Net Bill Tracking, State Net Full Text of Bills, or State Net Regulatory Text. If you are interested in learning more about State Net, contact us.
To subscribe to the Capitol Journal and access archived issue go to the State Net Capitol Journal.
Sign in with your Lexis.com ID to access LEXIS.com Estates, Gifts & Trusts and Elder Law resources
Discover the features and benefits of LexisNexis® Tax Center
View the LexisNexis
Catalog of Legal and Professional Publications
here for a list of available LexisNexis eBooks.
Click here to learn more about
For more information about LexisNexis products and solutions connect with us through our corporate site.