Who Is Illinois Trying to Fool?

The governor and legislature of Illinois want an ‘independent’ actuary to look over their pension system.

Why?

Let’s go to the youtube:

The full press conference is here but these are the pertinent portions:
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So why do they want an independent actuary?  The governor said it at the very end:

“We don’t want businesses not to invest in Illinois because they’re worried about our public pensions.”

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Got that you pension actuaries thinking of bidding?  Can you look at these excerpts from the last TRS valuation reprt and say:

  • 23.5% trust earnings for 2011.  You can do better.
  • 8.5% valuation interest rate.  Ludicrously low.
  • 3.2 billion in contributions; 4.4 billion in payouts….yeah, that works.
  • 46% funded ratio.  Who are you trying to impress?  Time for a contribution holiday, benefit increase, or both.

You’re hired.

8 responses to this post.

  1. Posted by Anonymous on June 20, 2012 at 11:26 pm

    what shocks me is that people actually believe that if they get rid of public pensions that will solve the state’s financial problems. That would mean that you actually believe what the state is telling you about its financial condition

    Reply

  2. Posted by dentss@yahoo.com on June 22, 2012 at 8:25 pm

    TL …I think the pensioners are in for a Corzine moment ….”I just don’t know where the money is “

    Reply

    • Posted by Tough Love on June 23, 2012 at 1:02 am

      They found the missing Corzine money.

      The money to fund NJ’s “promised” pensions never existed and never will.

      There will be a lot of publics wailing:

      …. “but we were promised”
      …. “but we were promised”
      …. “but we were promised”

      Reply

  3. Posted by bpaterson on June 23, 2012 at 2:51 pm

    perhaps the feds should hire the third party actuaries instead of the illinios politicians who really want everything to look rosy for the private industry to invest. How can someone come out with a report that attacks the hand that is feeding you.

    The union county posecutors report on the pure waste and corruption rampant in the annual union county musicfest is a perfect example. Musicfest was the county managers “baby” and the county manager funded the union county prosecuotors dept every year. So the prosecutor report glossed over the tens of thousands of $ missing and the found money squirreled away months later along with poor legal contracts and financial tracking and came up with “he didnt see any criminal actions being done”.

    Reply

    • I think the Union County prosecutor’s office did a good job in reviewing the 2010 musicfest chicanery. They found plenty of criminal activity – illegal raffle reporting and likely embezzlement plus tens of thousands of dollars in a safe in the Finance office, etc. – but where they fell down was in not prosecuting anyone so the message they wound up sending is that the county can keep doing what they’re doing and all they risk is having some unflattering report come out.

      Same with this actuarial review in Illinois. You may get someone to look over the books, see the mess, but if they don’t prosecute then the Illinois politicians can say that they brought in these ‘independent’ reviewers and we’re not in jail, are we? Never mind that the actuarial firm being brought in wouldn’t even have any power to charge anyone criminally since there are no rules for public pensions at all. The sad part is that the Union County Prosecutor’s office has those powers and they chose not to use them.

      Reply

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