3 Failings of a State’s Pension Consolidation Plan

Where: Illinois

What: Illinois looks to consolidate 650 suburban and downstate police and fire municipal pension funds

How much will the state save? Estimated savings to the state is $850 million to $2.5 billion over 5 years

3 concerns over the consolidation:

• savings will be overwhelmed by the weaknesses of the pension systems
• there are no reforms to contributions or distributions
• Moody’s Investors Service has warned that without major cuts, tackling the state’s pension debt is futile

Chief Investment Officer | Plan to Merge Strapped Illinois Local Pension Plans Raises Doubts