Pension Crisis Is Going to Get Worse

Here’s what one sees on the Downstate Teachers Retirement Fund web site.  The “Retirement Security for Illinois Educators” seems a bit optimistic.

At the end of this money, Moody’s, the bond rating company, will start using lower estimated interest rates to calculate pension liabilities for state and local governments, according to the Washington Post.

Pension gaps are expected to triple

A more honest way of reporting is the goal, the Post reports.

The Post does a goo job explaining how lowering the estimated rate of return raises the pension debt here.

In Illinois the Teachers Retirement Fund would show an unfunded liability of 83 percent under the new reporting requirements.

TRS Spokesman is quoted in the Post as describing the change as “a public relations problem.”


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