Wednesday, August 24, 2016

Rauner Says Pension Fund Will Have 'Devastating Impact' On Education

Gov. Bruce Rauner's administration says a pending move by Illinois' largest public-pension fund could increase the state's required payment by hundreds of millions of dollars.

They say that would have a "devastating impact" on education and social services.

The Teacher's Retirement System board is scheduled to vote Friday on whether to adjust its expected rate of return on investments. The action comes as pension systems nationwide are reporting lackluster returns. Analysts and rating agencies are pressuring them to lower assumptions to ensure there's enough money to pay benefits.

A retirement system spokesman says the recommended change and its potential impact won't be public until Friday.

Rauner's office says the lack of public discussion amid a budget crisis is "troubling."

Illinois has the worst-funded state pensions, with $111 billion in unfunded liabilities.

Information provided by the the Associated Press

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