As many expected, a judge has issued a stay on the pension reform passed last December. The case is likely to take a couple of years before it is decided at the Illinois Supreme Court.
Here is a statement from the President of the Illinois AFL-CIO, Michael Carrigan:
“This is an important first step in our efforts to overturn this unfair, unconstitutional law and to protect retirement security for working and retired Illinois families,” Michael Carrigan, president of the Illinois AFL-CIO, said in a statement issued by the coalition.
It appears that Mr. Carrigan left out the work Government Union in his statement. It should have read protect retirement security for working and retired Illinois government union families.
The law was aimed at helping taxpayers, although it really didn’t protect taxpayers either. We know this because even the Sun Times is finally pointing out the numbers games being played and how another tax increase will be needed.
Even after reform, pension debt will require tax hikes
Even if all these reforms were signed, passed, and upheld, Illinois and Chicago would still be left with cumulative 100-plus billions of dollars in unfunded pension liabilities piled up in past decades.
They further talk about the number games being played
Specifically, the unfunded liabilities of the state’s five pension plans will be far higher than previously reported ($100 billion). How much higher? The plan actuaries surely know, but they’re not saying. The same will be true of Chicago’s pension plans and the teachers’ plan.
These liabilities are — and will be — far higher than previously reported EVEN IF all the proposed reforms are enacted and sustained in their entirety. How much higher? We shouldn’t have to wait for the answer until after the November election. The governor and mayor should tell the public now. If they don’t know, their actuaries should give them the best estimates available.
These shenanigans and fake pension reform were reported last year right here at Champion News and by State Rep David McSweeney and others. Taxpayers are once again not being given the entire truth and yet they are the ones who ultimately will have to pay for the politicians and government union games.