Posted on: December 12th, 2014
Two actions taken this week by Illinois Governor-Elect Bruce Rauner indicate that he plans make good on his pro-growth campaign promises. And Illinoisans across the state must be breathing a heavy sigh of relief.
Illinois’ state-run pension plans are quite simply bleeding the state dry. Illinois’ pension debt now is well over $100 billion. According to an Illinois Policy Institute (IPI) report released this week, the state contributes the equivalent of up to 127 percent of its state employee salaries just to meet the defined-benefit pension systems’ obligations. In the average private sector, where employers have shifted to defined-contribution plans, the employer contributes the equivalent of 9 to 10 percent of a worker’s salary each paycheck.