McConchie: New, disturbing report demonstrates the dire need for pension reform in Illinois
With the release of Fitch Ratings’ 2017 state pension report, State Sen. Dan McConchie (R-Hawthorn Woods) says Illinois’ out-of-control pension system needs to be reformed immediately.
“The General Assembly can no longer allow the Democrat Majority to kick the can down the road,” said Sen. McConchie. “It is way past time to fix this problem. Illinois needs reform and it needs it now.”
According to the report, Illinois’ net pension liabilities lead the nation at $151.5 billion at the end of fiscal year 2016. That is $21.7 billion up from last year’s CoGFA report of $129.8 billion.
Illinois' pension burden far exceeds the pension liabilities of other states with high pension burdens. New Jersey has the second highest with $91.8 billion, Massachusetts with $48.9 billion, and Kentucky with $32.8 billion.
The report also suggests that Illinois' unfunded pension liabilities amounted to 22.8% of residents' personal income. The median is 3.1% for all states.
“The bottom line is that the system is fundamentally out of control. The state’s pension liabilities cost every man, woman, and child a whopping $11,780. That is an injustice to the people we represent. We can’t ignore this problem any longer and just hope that it goes away. It’s not going away. The longer we wait, the worse it gets," said Sen. McConchie.