Illinois’ unfunded pension obligations, along with a state Supreme Court ruling that state retirees cannot be forced to pay health insurance premiums, have the state up against it. We can all agree on that.
The right-leaning “free market” advocacy group Illinois Policy Institute says new standards from GASB – the Government Accounting Standards Board – magnify the problem.
Ted Dabrowski, IPI’s vice president of policy, says the state’s taxpayers are on the hook for $56 billion, and that’s more than 10 percent of the total for the fifty states.
“Most governments are overly optimistic about the investment returns they have,” Dabrowski says, and “the pension shortfalls are much higher.”
IPI points out most private-sector retirees have no expectation their employers will pick up the health premiums.