dmarc117 Posted January 26, 2009 Share Posted January 26, 2009 http://www.suntimes.com/business/savage/13...9.savagearticle The State of Illinois has the most underfunded public pension plans in the nation, with a funding gap that is now approaching $50 billion. The low balances in the state's pension accounts have been made worse by the stock market crash, which has also hit Chicago's and Cook County's employee pension plans. Here's a look at the dire situation for the retirement plans of state workers ranging from police to judges to university professors to members of the Illinois General Assembly. All are counting on generous state pensions, but may soon wake up to a brutal reality. A financial war is brewing -- and it's likely to pit these public employees against Illinois taxpayers who are responsible for paying those generous pension promises. There simply isn't enough money in all these retirement plans (see box) to send out the promised checks. If you think Bernie Madoff had a Ponzi scheme going, wait until the wave of boomer retirement hits the reality of pension underfunding. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted January 26, 2009 Share Posted January 26, 2009 Why are some workers still on pensions (I know some signed on before the 401k)? Why isn't the 401k ubiquitous? Are pensions still provided to any new employees anywhere? Quote Link to comment Share on other sites More sharing options...
westvirginia Posted January 26, 2009 Share Posted January 26, 2009 Why are some workers still on pensions (I know some signed on before the 401k)? Why isn't the 401k ubiquitous? Are pensions still provided to any new employees anywhere? It's government, and you expect it to make sense? Quote Link to comment Share on other sites More sharing options...
Duchess Jack Posted January 26, 2009 Share Posted January 26, 2009 (edited) Why are some workers still on pensions (I know some signed on before the 401k)? Why isn't the 401k ubiquitous? Are pensions still provided to any new employees anywhere? Eli Lilly just bought the company I work for and offers pensions. How long? Who knows, but its a standard thing for them.... ....and they match 100% of your 401k contributions so at least here, its not one or the other Edited January 26, 2009 by Duchess Jack Quote Link to comment Share on other sites More sharing options...
darin3 Posted January 26, 2009 Share Posted January 26, 2009 I work with one of the largest pension funds in the world. 2008 was the first year that their real estate investments did not net a profit. Many of their projects have been put on hold and they're freezing all new investments, at least for now. It's ugly. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted January 26, 2009 Share Posted January 26, 2009 It's a sweeping generalization but surely pensions have been demonstrated to be a commitment for companies to still be paying people thirty years after they've retired. That just HAS to be insane as the airlines and others have proved. I am amazed there are still companies offering pensions to new employees instead of letting the pension commitment diminish as people die off. Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted January 26, 2009 Share Posted January 26, 2009 Theres no doubt about it... more people need to die younger. Quote Link to comment Share on other sites More sharing options...
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