ALTERNATIVE BUDGET SOLUTIONS MANAGING THE STATE’S FINANCIAL PROBLEM WITHOUT DIMINISHING RETIREE BENEFITS February 2013
The Governor and some Legislators continue to promote the passage of legislation that is designed to diminish the pension benefits of State retirees.
Retires did not cause the unfunded liability budget problem. They provided the service they were asked to provide. They contributed financially and timely to their respective retirement systems as required by the laws passed by the Legislators and the Governors of the State.
The RSEA Board continues to believe that correction of the pension unfunded liability problem can be accomplished without reducing the pension benefits of retirees.
There are ways to structure the State’s payment obligations so they are more manageable and less costly without diminishing the pension benefits of public retirees. At least three such alternative solutions have been put forth. A summary explanation of each one may be seen by clicking on the following links:
State Representative Mike Fortner Click here
Ralph Martire, Executive Director, Center For Tax and Budget AccountabilityClick here
Jeffrey Brown and Nolan Miller Professors of Finance, University of IllinoisClick here
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