Gov. Pat Quinn’s plan to overhaul government pension systems to save money would actually cost Illinois taxpayers $95 billion extra over the next three decades, according to documents obtained by The Associated Press.
Gov. Pat Quinn’s plan to overhaul government pension systems to save money would actually cost Illinois taxpayers $95 billion extra over the next three decades, according to documents obtained by The Associated Press.
Wrestling with an $11.6 billion budget deficit, Quinn wants to cut in half the amount of money the state would put into retirement systems for state employees in the next five years.
But huge long-term costs would follow those short-term savings, according to a payment plan the governor’s office has shown to legislative budgetwatchers and employees’ unions.
The total cost would be $532 billion through 2045, up from $437 billion under the current pension plan.
"This doesn’t work, this can’t work. This just repeats the irresponsible behavior of the past except at a higher cost to the state over time," Ralph Martire, executive director of the Center for Tax and Budget Accountability, said Tuesday.
Quinn spokeswoman Katie Ridgway countered that ultimately Illinois pension systems would wind up owing less to retirees under the governor’s proposal because benefits would be scaled back. In 2045, for instance, the amount owed under Quinn’s plan would be $150 billion less than under the current system.
Ridgway emphasized that talks with legislators continue, and there’s no final pension plan.
Quinn is saddled with a combination of past neglect of state employees’ retirement systems and a huge budget deficit at a crucial time for public pensions.
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