Illinois' unfunded pension obligations, along with a state Supreme Court ruling that state retirees cannot be forced to pay health insurance premiums, have the state up against it. We can all agree on that. The right-leaning “free market” advocacy group Illinois Policy Institute says new standards from GASB – the Government Accounting Standards Board – magnify the problem.
Ted Dabrowski, IPI's vice president of policy, says the state's taxpayers are on the hook for $56 billion, and that's more than 10 percent of the total for the fifty states!
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“Most governments are overly optimistic about the investment returns they have,” Dabrowski says, and “the pension shortfalls are much higher.”
IPI points out most private-sector retirees have no expectation their employers will pick up the health premiums.