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 â€śfree marketâ€ť advocacy group Illinois Policy Institute says new standards from GASB â€“ the Government Accounting Standards Board â€“ 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.
â€śMost governments are overly optimistic about the investment returns they have,â€ť Dabrowski says, and â€śthe pension shortfalls are much higher.â€ť
IPI points out most private-sector retirees have no expectation their employers will pick up the health premiums.