SPRINGFIELD, Ill. — Illinois taxpayers are on the hook for guaranteed public pensions no matter how well the investments perform on Wall Street.
When Illinois’ five pensions systems earned nearly 13 percent on their investments last year, Illinois taxpayers still made pension payments that topped $6 billion. State taxpayers also ponied up the dough when the funds earned less than 1 percent two years ago.
“The fundamental point of this is that there is a guaranteed rate (for benefits) for public-sector workers,” Ted Dabrowski, vice president of policy for the Illinois Policy Institute told Illinois Watchdog. “We have this system that guarantees benefits, yet we can never put enough money into it to make it meet its requirements.”