Wednesday, Aug 20, 2014
Quincy, IL News - QuincyJournal.com
Trending on the Journal

Recent Comments

qfingers - Six Quincy property owners face deadline - Quincy, IL News - QuincyJournal.com
And why should this stop? It's all part of their compensation. They spend a lot more time than what you see on TV. For example, if you eliminate the health care you reduce the likelihood of a small business owner wanting to run. Plus it also means most of the council members have the same health insurance as other city employees...which seems like a jolly good idea There are two reasons…
pjohnf - Clock ticks on Illinois term limits ballot measure - Quincy, IL News - QuincyJournal.com
Why does the proposal have the size of the House and Senate in it? It should have only dealt with whether voters support term limits for our corrupt politicians. However even with the House and Senate changes in it, it should be allowed to be voted on by voters. The only reason Quinn and Madigan oppose the measure is because it threatens their power and control.
pjohnf - Bad news for hopeful Illinoisans on jobs, economy - Quincy, IL News - QuincyJournal.com
In other words Quinn's figures are a lie and a distortion of the true employment and unemployment numbers. Numbers I've seen that show only 47% of working American's have full time jobs. That is hardly good news for workers.
Stupid_Dems - Six Quincy property owners face deadline - Quincy, IL News - QuincyJournal.com
Absolutely, all but 3 or 4. About a 100 grand or more a year.
chebby79 - Six Quincy property owners face deadline - Quincy, IL News - QuincyJournal.com
are taxpayers still paying for the aldermen's health insurance? if so, this needs to stop.

Most Popular

Liberty woman dies in early morning crash

QPS Board approves $89 million Bond Issue Video

Man who burned down Newcomb Hotel arrested again

Driver in fatal Liberty crash now facing charges Updated

Adams Co. Divorces for August 16, 2014

Knapheide Family Wellness Center to open Monday

McCaskill: Governor to pull county cops out of Ferguson

QPD no longer looking for missing Quincy man Updated

Unfunded public pension liability could go up in Illinois

2 years, 2 months ago by Paige Traeder

A possible change to one of the state’s public pension systems could cast a shadow on any reform Illinois lawmakers enact this summer

By Andrew Thomason, Illinois Statehouse News

A possible change to one of the state’s public pension systems could cast a shadow on any reform Illinois lawmakers enact this summer.
 
The Teachers Retirement System, the largest state-run public pension system, is reviewing the numbers to calculate how much it will make on its investments. If the figure is lower than the current expected rate of return — 8.5 percent — the system's unfunded liability would increase.
 
In fact, if the adopted rate of return figure is less than 7.75 percent, the unfunded liability would continue to grow yearly, said Hans Zigmund, associate director at the Governor’s Office of Management and Budget.
 
TRS has an unfunded liability of $44 billion, or 55 percent unfunded, meaning it only has enough assets on hand to cover 45 percent of the cost of current and future pensions. 
 
A recommendation for a change to the expected rate of return for TRS investments, which happens every five years, could come as early as its June 21-22 board meeting.
 
State Sen. Jeffrey Schoenberg, D-Evanston, said the rate of return could be lowered because of pressure from the bond-rating agencies, which determine a state’s credit worthiness.  
 
“The rating agencies like Moody’s and their counterparts have been more insistent in recent years that the return on investments be re-calibrated to be more accurate,” Schoenberg said. “This is not only happening in Illinois, but across the nation as well.”
 
TRS spokesman Dave Urbanek said no decision has been made and options for adjusting the expected rate of return have not been presented to TRS board members.
 
Lowering the expected rate of return would be a move in the right direction, but it would not affect the retirement system's finances, said Jeffrey Brown, director for the University of Illinois’ Center for Business and Public Policy and an expert on public pension policy.
 
“It just means we’re going to come closer to accurately reporting what the unfunded liability is,” Brown said.
 
“Often what happens in public pensions is those rates are set too high. They tend to be set on someone’s expectations on what a risky portfolio allocation would return over time … but that’s highly problematic … because those expected returns are not guaranteed,” Brown explained.
 
The rate of return on investments for the past decade has been 6.2 percent, rather than the expected return of 8.5 percent. But Urbanek said TRS investments, during the past 30 years, have averaged a return of 9.3 percent.
 
“The rate of return is a 30-year number, that’s our long-range expectation of what we’re going to return” on investments, Urbanek said.
 
Changes to the TRS expected rate of return and unfunded liability would affect the number being associated with savings from public pension reforms, which the General Assembly is pushing. At their heart, the reforms would change cost-of-living increases some retirees receive, as well as move to fund the public pension systems fully in 30 years. 
 
Zigmund said during a committee hearing on public pension reform last week that a lower rate of return for TRS could affect pension savings to the tune of $20 billion over 30 years.
 
The possibility of an increase in the unfunded liability for TRS is, in part, responsible for the lack of Republican support for a comprehensive pension reform package.
 
Senate Republican Leader Christine Radogno, R-Lemont, questioned a section in the package that would place responsibility for any future increase in TRS' unfunded liability, including an increase caused by the adjustment of the expected rate of return, on local school districts.
 
“It’s a risk that we’re just saying, ‘We don’t want any part of that even though the state created that risk,’” Radogno said.
 
The four legislative leaders — Radogno; House Speaker Michael Madigan, D-Chicago; House Leader Tom Cross, R-Oswego; and Senate President John Cullerton, D- Chicago — and Gov. Pat Quinn met Wednesday in Chicago to hash out more far-reaching legislation that could include TRS. Lawmakers and Quinn have said pension reform must be done sooner rather than later, but no special session dates have been set. 
 
Quinn said Wednesday another such meeting will happen later this month.

From the Newsroom

Bob Gough on Twitter

Bob Gough 23 minutes ago

RT @Jonssonville: U.S. Attorney General Eric Holder expected to arrive in St. Louis at 11 a.m. http://t.co/RIes3VKD1y #ferguson
Bob Gough on Twitter

Bob Gough 45 minutes ago

RT @DRUDGE_REPORT: Man wearing blue shirt poses as TSA, pats down women at airport... http://t.co/WQN3P4RmSq
QuincyJournal on Twitter

QuincyJournal 2 hours, 15 minutes ago

Make reservations now for last Walking Tour of 2014 - The tour will be at 10 a.m. Saturday, September 6 at the H... http://t.co/xy0lKpEWs6
QuincyJournal on Twitter

QuincyJournal 3 hours, 23 minutes ago

Can Twitter help better identify foodborne illness cases? - A new analysis shows that new technology might improve... http://t.co/YmjAKQByX9