A state pensioner earning $8,000 a month may receive $1 million, lifetime. Getting that kind of money all at once could be an option to save the pension system, in the mind of State Rep. Mark Batinick (R-Plainfield).
“The state would take a small discount for offering this option and reinvest that money on the asset side, to help stabilize the pension problem,” Batinick says. A state Supreme Court ruling that a previous fix is unconstitutional means “we can't do anything about the liabilities, and we can only add in more assets.”
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Plus, it would only be an option, thus helping its constitutionality, he says. Batinick is hoping the House can soon form a committee and hold hearings into his idea, which he says is inspired by what's done at companies such as GM, Ford, and Boeing.
Illinois' unfunded pension liability is an estimated $111 billion.