‘Land of Lincoln’ on borrowed time

It is highly unlikely that pension reform will be addressed when lawmakers return to Springfield Nov. 29, the date they set for a one-day session when they shamefully fled Springfield earlier this month without resolving pension reform, casinos and tax changes to aid business. Intense union opposition exists to any pension reform that seeks to raise public employee pension contributions. Also looming large is the issue of constitutionality. Leaders of public employee unions point to a clause in the state constitution that defines a pension as a contractual commitment which cannot be altered. In other words, pension agreements initially made are forever set in stone. Meanwhile, the worst crisis by far in Illinois is the potential collapse of the state’s pension system, already the most underfunded in the nation.

The Teachers Retirement System is the largest and costliest of Illinois’ pension programs. In March, the system was nearly $40 billion short of what is needed to cover future benefits — the deepest financial hole in 20 years of state records. According to the Illinois Policy Institute: “In nearly two-thirds of districts across the state, teachers don’t contribute the full ‘employee share’ toward their pensions. In fact most of these districts don’t require their teachers to contribute anything toward their own retirement. Instead, the contributions are paid for or ‘picked up’ by school districts — and by extension, local taxpayers.”

Meanwhile, Democrats in control of the House and the Senate advocate taxing as the way out, along with borrowing more money. Can Illinois afford to borrow more money? Illinois is already paying the highest interest rate spread of any other of the 49 states as the state most likely to default on its obligations by the financial market.

Illinois cannot continue on its current path. Its pension system insolvency is jeopardizing the future of the “Land of Lincoln.”

Nancy J. Thorner

Lake Bluff