Chicago Suburb Examines Public Pensions
Today the Chicago Tribune ran a 'watchdog' type story highlighting two suburban Chicago police officials who's salaries jumped by more than 50% in their last year of employment. The author draws the link between inflated final year salaries and every escalating pension liability. Here's an excerpt:
Towns have long been aware of the financial time bomb created by pension deficits, but what happened in Chicago Ridge was hardly unique. Some municipalities are sweetening deals for their top police and fire administrators even as they call for pension reform in Springfield.
Illinois' pension system -- including police, fire and public-sector employees -- is the most underfunded in the nation, according to the Pew Center for the States, with only about half the assets needed to cover a staggering $60 billion in liabilities.
Check out: Padded pensions