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Illinois teacher won - or did they?

Discussion in 'Politics, Elections & Legislation' started by halfmile, Nov 3, 2012.

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  1. halfmile

    halfmile Well-Known Member

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    from watchdog.org:

    TRS bleeding out, experts say

    Illinois’ teacher pension system could go broke if the state does not figure out a way to fully fund the system soon, the leader of the retirement system and others have warned again.

    Illinois’ Teachers’ Retirement System is seeking $3.4 billion from the state for its portion of the pension costs for fiscal year 2014. That’s about $500 million more than the system sought from the state for the previous fiscal year.

    “TRS faces the real risk of future insolvency because of insufficient state funding over the last 30 years,” said Dick Ingram, executive director of the Teachers’ Retirement System, who previously has made the same dire prediction.

    “TRS absolutely will be able to meet its obligations to retired teachers in the near future, but we cannot guarantee retirement security for future generations of teachers unless the state meets its total obligations.”

    HM
     
  2. shadow

    shadow Active Member

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    Maybe Rezco got it and bought Obamas' house.
     
  3. g7777777

    g7777777 TS Supporters TS Supporters

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    States cant print money like the Federal Govt
     
  4. Rick Barker

    Rick Barker Well-Known Member

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    It is not a problem.

    The fix is real simple.

    They will increase all taxes of all kinds income, tax, sales, liquor, excise, and fees, permits, licenses, fines, levies.

    It's been going on for decades upon decades.
     
  5. pyrdek

    pyrdek Well-Known Member

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    This looks like poor business planning on the part of the previous (CORRUPT) Illinois governors and the state legislature that is responsible for pass the appropriation bills and signing them into law.

    What I am wondering is what those law makers did when the plan was getting interest, dividends and value appreciation back when the economy was doing well. Did they shirk their responsibility to continue to make payments into the fund (even while withholding the money from the teacher paychecks as happened elsewhere, like PA for example) so they could use the "extra" money for their own plans? The prime concern of any long-term account is to make interest build by continuing to contribute principle to the plan continuously from the start.

    Is it possible that some of these funds, originally set for the pension plan, may have instead been used for the WSRC Center in Sparta? or other "special" projects? The recipients of these "special projects" (including trapshooters for Sparta) sure did not complain then. Now their bill is coming due and they are singing a song of sadness.

    Putting some principle in and then not putting anything in when dividends are high is a surefire way to lower your eventual value. Then when it is time to "pay the piper" there has not been the accumulation of funds needed to actually write the checks to "pay the piper".
     
  6. Recoil Sissy

    Recoil Sissy Well-Known Member

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    Halfmile:

    TRS is one of the five retirement systems administered by the State of Illinois. It covers all public school teachers except Chicago's. Chicago has a separate, corrupt, and nearly bankrupt teacher's retirement system of its own.

    The other four state systems (in no particular order) are:

    GARS... General Assembly Retirement System - for legislators and their staffs

    JRS... Judges Retirement Systems

    SURS... State University (employees) Retirement System

    SER... State (of Illinois) Employees Retirement System. SER covers all state employees that aren't included in one of the other systems.

    The lowest estimate of their combined UNFUNDED liabilities is $80 billion.
    $80 billion isn't the total liability - just the UNFUNDED portion. Other estimates for the unfunded portion go as high as $200 billion. It doesn't much matter. Whether $80 billion or $200 billion, Illinois sits at the bottom of the list. The other 49 states (including perennial fiscal basket case California) are ALL in better shape.

    In one respect the state's retirement systems are similar to many private systems. They are funded by a combination of employee and employer contributions. In 2009 (the most recent year I found for employee contribution rates) the employee portion ranged from 8% (SURS, and SERS), to 9.4% for TRS, 11% for JRS, and 11.5% for GARS. So how the heck did they get in this shape?

    Well... our friend Pyrdek is concerned that the perpetual democrat majorities in the Illinois General Assembly may have misused the accumulated dividends and interest in the state pension funds. That really wasn't the problem. Some explanation is required.

    Jim Edgar (1991 - 1999) was the last Illinois governor that exercised a modicum of fiscal responsibility. He was immediately nicknamed "governor NO" because of his habit of using the veto pen on a parade of legislation expanding existing irresponsible programs and the creation of new irresponsible programs. His basic rule was don't bring me a spending bill without funding to pay for it. Every time they did, he stepped on it.

    So Pyrdek, the first big problem wasn't a misallocation of earned interest and dividends. It was and remains far worse. The state simply ignores its pension funding obligation. The only things they have contributed for a couple of decades are IOUs with nothing to back them up.

    So what happened to the money that should have gone into the systems? As usual it was spent on bullsh!t programs whose only intent was buying votes.

    TRS is only part of the story, Halfmile. The only thing that distinguishes TRS from the four other systems is size. TRS is the largest. Besides getting stiffed by the perpetually irresponsible General Assembly, TRS shares the second big problem with its sister funds.

    Let's assume the state had in fact, made every payment it was obligated to make. The systems are STILL underfunded. The minimum requirement for early retirement and the level of benefits paid are greater than the systems can support. Even with the inclusion of the state's funding portion, all that changes is the AMOUNT of unfunded liability.

    Here's the bottom line...

    Illinois' pension systems are a good case study for the site dullards and others who think obamanomics are the way to go. States can't print money so we'll all get to see what a state bankruptcy looks like. After that, we can look to Greece as a miniature model of what the U.S. will look like as a bankrupt nation.

    sissy
     
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