patrick.net

It unseated California for the state with the worst credit rating in the US. So, yeah they need to try something different.

"Obama Chicago union thugs acorn" post in 3, 2, 1...

Mish says:

These states are embracing self-managed plans, such as 401(k)-style accounts, to increase retirement security for their workers and to bring back certainty to state and local budgets.

This week, Oklahoma’s House of Representatives passed a bill that moves some new state workers into 401(k)-style plans.

Why is that good ? Let's see.

New state workers have 401ks. That won't affect pension outflows for 30 or 40 years, but it decreases money paid in to pension funds starting immediately.

This is only good if you are like Mish, and you fantasize about "union thugs" (aka state workers) getting totally screwed out of their pensions all together./p>

Oh yeah. Let's do that right before the baby boomers start retiring.

Far better to do what Governor Brown has proposed for California Teacher's pensions. Increase all three inputs into pensions, the local districts, the employee (teacher) contribution and the state (the smallest of the contributors). This will be done without a huge increase in taxes.

marcus says

New state workers have 401ks. That won't affect pension outflows for 30 or 40 years, but it decreases money paid in to pension funds starting immediately.

I don't think anyone understands this point unfortunately.

Governor Pat Quinn passed Illinois' largest tax hike on record immediately after he was elected.

Dude give me a break. Income tax was 3% flat for a LONG time in IL. Now it is 4.5%. It's the largest percentage wise on record perhaps but only because it started very low! If you are not paying cook county property tax it is a cheap state to live in.

Illinois pension collapse will be OK because there aren't any Republicans in the system.

Exactly. It's all part of their idea of the American way, which is "I've got mine, fuck you."

The problem with the Illinois pension system is that the state has not met is obligations to contribute for decades now and instead has used that money to give away to special interests. They justified not investing money by getting involved with shoddy investors who allowed them to project growth in the pension without contributing, but actually lost money and left the system in much worse shape then had they done nothing. If anyone in the voting public took the time to pay attention to what was going on the last few decades then they probably wouldn't be in this mess. Now the state needs to meet obligations to the employees which are guaranteed in the state constitution. The people elected the politicians that made this mess, so now they should have to pay for it. I don't ever hear conservatives talking about their beloved 'responsibility' when it comes to them maintaining their commitments to lower middle class employees (like teachers).

DDDDDSSSSS says

The problem with the Illinois pension system is that the state...

Could have easily been written...

The problem with the ___fill-in-the-blank___ pension system is that the state...

I'm shocked, but then with the highest per capita governor behind bars maybe it's not so surprising...