For only the second time in history, federal authorities are accusing an entire state government of securities fraud. The Securities and Exchange Commission has announced a settlement with Illinois, after it accused the state of saying it was correctly funding public employee retirement plans, when it actually wasn't. It happened between 2005 and 2009 under Governor Rod Blagojevich.
The SEC says the state didn't adequately describe the impact of the 50-year payment schedule, which was passed into law back in 1994. It also claims the state didn't properly report how cutting back on pension payments back in 2006 and 2007 would impact the systems today. The state started taking steps to properly disclose all the information back in 2010. Now, the SEC says it has more than enough information on hand. Illinois will not have to pay any fines or fees because leaders took the proper corrective measures.