Illinois' worst-in-the-nation pension crisis explained

Illinois' pension crisis touches every corner of the state. From public safety and service cuts in the Metro East, to a junk credit rating for the city of Chicago, to exploding property tax bills across the collar counties. Illinoisans now owe $45,000 in pension debt per household. But what's driving Illinois' pension crisis? And how did Illinois politicians let it get this bad? Senior Director of Budget and Tax Research Adam Schuster explains.

[michellemathia]

Thank you IPI for your consistent, accurate research and messaging on the pension crisis in Illinois.

[rncro]

I RAN from Illinois 6 years ago to Florida and never looked back. Best move I ever made.

[MoonlightXYZ]

Illinois is screwed. The last person to leave, turn off the lights.

[bobdobb]

I was born and live in Michigan but some of my favorite memories are from Illinois. This is a sad story for me. I went to high school in Southern Illinois. I remember how I loved Chicago so much better than LA or New York.

[willdoss]

The pension system wasn’t the problem. The problem was Illinois politicians stole from the different systems and never properly funded them. Some Illinois employees contribute up to 12.5% of their salary and they don’t receive social security. 12.5% is more than double what everyone contributes to social security. Unfortunately those facts are omitted from the story.

Politicians serving during the past few decades need to be locked up for official misconduct

[Rex-guoh]

Other states wish they had what Illinois has: Some of the best farm land in the country, world class universities, Lake Michigan, major river systems, transportation, etc. It is a shame the out of control pension crisis is sinking this great state.

[syedvasty]

I love your content and want to see you guys on tiktok and Instagram and watch your viewer base grow

[TakingonSocialism]

He failed to mention the decades of reduced funding which did not help either !!!

[RondelayAOK]

Retired state employees need to take the haircut.

[HeavyRollin]

Wow! This was excellent presentation and information.

[chad]

"It's not the pensioner's fault" ... How? If someone told me I'd be able to retire early and then collect an exorbitant amount of money the rest of my life ... from a fund that I myself contributed very little into ... I would have told you to go pound rocks because it's too good to be true and wouldn't be sustainable!

[JohnB-weym]

Illinois has high property taxes but traditionally had a low income tax. Politicians didn’t fund their pension system and often “borrowed” from the systems. This guy is telling half truths

[sentinel]

What do you mean government workers are not to blame ? They don't have to take the money. They are 100% to blame.

[timnewman]

One thing is for sure they better figure it out because if they end up
Not being able to fulfill promises there is going to be a Big issue

[MrBobochow]

Only fool’s make promises ! We need some austerity measures with pensioners in Illinois. That’s the only way to get this under control.

[dank]

I'm a member of IMRF in Illinois. Its doing well currently at 94% funded. Why are all the other so bad?

[SRS]

Disclaimer: I am a public employee pensioner, and have been on a pension board for numerous years, but I believe that this is a mess and unsustainable. Here is an additional issue; My understanding is that without COLAS or if the the law sets a limit on how much someone is eligible for in retirement, the employee then would become eligible for Social Security. Then the employer/employee will need to pay into that along with the the pension. Social Security doesn't allow a "pension holiday" which happens when the employer misses a contribution to the the fund on payday, many municipalities do it all the time. With Social Security the bill comes due every pay day and gets paid, ( just like IMRF which is well funded.) Tier 2 addressed some problems but perhaps what is needed is additional tiers in order to move new hires off pensions altogether, and into a 401 or 457 plan along with social security. It is going to take time but it could be done. Anyone else have any ideas, because the politicians have nothing...

[robertruschak]

Over 80% of real estate taxes are contributed to public sector pension funds

Most other private sector employees have to create their own retirement plan

Good luck

[yomommacello]

So I agree with all of this but is it at all realistic to have a vote on pension reform? From what I’ve seen legislation that tried to reform the pension the IL Supreme Court struck it down. I can’t help but feel cynical.

[tannerlibbra]

Great messaging and it's a fight WE ALL NEED TO JOIN. I think it should be up for vote, though I think it will be difficult to overturn even then. You better believe those people receiving the lavish pensions will show up to vote against reform that will reduce their benefits....unless we can somehow get it through their skulls that voting for pension reform is actually voting to save the system itself. Maybe just include in the vote for no, that DCFS will now be dropping kids off on their doorsteps proportionate to the amount of funding their pensions hog to offset the expenses DCFS can't cover thanks to them.