Written by Legal Record Webmaster
Tuesday, 23 February 2010 17:00
A report released by the respected research group the Pew Center on the States found that Illinois ranks dead last when it comes to funding the state’s pension systems.
According to the report, Illinois’ unfunded liability surpasses $54 billion—or only slightly more than half of what the state needs to pay to its five state retirement funds. The Pew Center noted that only 54 percent of the state’s pension liability is funded, which is far below the 80 percent funding level recommended by experts.
It was also highlighted that Illinois has consistently deferred making its required payments into the systems, “paying less than 60 percent of the required amount in each year since 2005” and issuing “$3.5 billion in bonds to pay for its 2010 actuarially required contribution.”
The Pew Center’s study only researched pension funds through fiscal year 2008 and does not even account for the recent stock market crash—and the serious impact that had on the value of state pension investments.
House bill requires legislative input into state transactions
The Illinois House approved a measure this week that mandates legislative input and consent on valuable state transactions, including the proposed sale of Thomson Correction Center.
If signed into law, House Bill 4744 would require the General Assembly’s stamp of approval before the state could sell any surplus property that is worth more than $1 million. Currently, the law allows a piece of “surplus” property to be sold immediately after appraisal and without the consent of lawmakers.
The bill also changes the definition of “surplus real property.” Under House Bill 4744, surplus real property would apply only to property that has not been used by the state for at least three years and for which there is no foreseeable use in the next three years, or property that has not been used by the state for at least the past six years, or property that has been reported or transferred to the Director of the Department of Central Management Services as unused property and for which there is no foreseeable use by that agency.
The bill now heads to the Senate for consideration.
Source: http://capitolconnection.ilsenategop.net/mail/util.cfm?gpiv=2100054222.48686.344&gen=1
