Illinois considers pension-fund gamble

Jul 2014
36,662
9,666
midwest
#1
Lawmakers in Illinois are so desperate to shore up the state's underfunded retirement system that they're willing to entertain an eye popping wager: borrowing $107 Billion and letting it ride in the financial markets.

Illinois owes $129 Billion to it's five retirement systems...but the stock market?

Seriously?

That sounds pretty desperate.

Wonder what the states employees and current pensioners think about it?

The markets has been doing great, but a correction in gonna happen at some point.

Remember the outcry when there was some talk about this with Social Security?

From Bloomberg News
 
Dec 2006
8,658
10,692
required field
#3
Illinois owes $129 billion to its five retirement systems after years of failing to make adequate annual contributions. Because the state’s constitution bans any reduction in worker retirement benefits, the government’s pension costs will continue to rise as it faces pressure to pay down that debt, a squeeze that has pushed Illinois’s bond rating to the precipice of junk.
Oops? Maybe there's a lesson in there somewhere?

Illinois Ponders Pension-Fund Moonshot: a $107 Billion Bond Sale - Bloomberg Markets
 
Jul 2014
38,922
33,906
Border Fence
#4
I'm far from a financial wizard but even I know you don't role your whole wad in one venture.

I say buy 50billion in PowerBall tickets.
 
Jul 2011
34,665
2,774
Tennessee
#5
Lawmakers in Illinois are so desperate to shore up the state's underfunded retirement system that they're willing to entertain an eye popping wager: borrowing $107 Billion and letting it ride in the financial markets.

Illinois owes $129 Billion to it's five retirement systems...but the stock market?

Seriously?

That sounds pretty desperate.

Wonder what the states employees and current pensioners think about it?

The markets has been doing great, but a correction in gonna happen at some point.

Remember the outcry when there was some talk about this with Social Security?

From Bloomberg News
They missed the boat by about 8 years

Lol