ConCon can fix state pension fund
One of the major contributing factors of the debt crisis that is looming in Illinois is a defect of the Illinois constitution. Our current constitution requires payment of pensions but does not require the Illinois General Assembly to adequately fund the pension system.
The results of this constitutional defect have been nothing short of disastrous. Our state pensions system is the worst funded pension system in the nation. Illinois is not even close to 49th place. For almost 40 years the General Assembly has had the opportunity to correct this problem and do right by their people. They have utterly failed to act despite clear and damning indications of the looming fiscal crisis.
The only way to fix this problem to guarantee the pensions for hard working school teachers, police officers and other state workers is to convene a constitutional convention. A constitutional convention allows for voters to act when elected leaders have failed to do so, and our elected leaders have completely failed on the pension issue.
While it is true that various special interests who have been complicit in underfunding the pensions have been stating that a constitutional convention will lead to pensions simply being confiscated. This is simply untrue and those making that claim know it.
Pensions are also guaranteed by the federal constitution, and there is nothing a convention can do to change that. What a convention can do is amend the constitution to require the state actually fund the pensions instead of shortchanging them.
It is true that there is a pension guarantee clause in our state constitution, but what kind of guarantee is it when the state can promise a hard working person a pension and then fail to actually fund that pension? These kind of economic games got Enron into trouble and now threaten our banking system.
In 1969 and 1970 when the pension guarantee was debated, it was decided that the particulars of how to fund the pension should be left up to the General Assembly. We have seen the profound error of that decision. In every single year since the ratification of the 1970 Constitution, the General Assembly has failed to put in their promised share of contributions to the pension system. More than once they actually attempted (sometimes successfully) to raid those pension funds.
If this was a problem that only occurred in one budget year, it would have long since been solved. This is a systemic constitutional defect that takes place year and year. It allows the state to delay meeting its obligations while the debt keeps on growing and growing. The state is in debt almost $111 billion (or twice the annual state budget) and a large part of that is pension debt. This debt prevents capital projects moving forward, puts a straying on improving education funding, and has drastic effects all across Illinois.
While some argue that the pensions are "safe" now, how could a system that doesn't require the state to put up its fair share be considered safe? The fact is, the state is going bankrupt because of the recurring deferral of pension payments. Bankruptcy is the only situation when the pensions can be cut because a federal judge will come in and decide what bills can be paid and what can't, and historically pensions haven't done well in that situation.
Simply put, there is absolutely no risk to the pensions should there be a constitutional convention. Most importantly, the voters have to ratify any change that a constitutional convention proposes. Not even a single comma can be modified without voter approval. It is ludicrous to believe that voters will approve a "special interests" constitution.
If you are in a state government pension system or know someone who is, you cannot afford to vote no for a constitutional convention. Voting yes gives us to opportunity to fix the constitutional problems with the pensions, voting no gives you a system bound for bankruptcy.
State Rep. John Fritchey
Chicago
State Rep. Michael Tryon
Crystal Lake