Illinois postponed a $500 million bond offer yesterday after Standard & Poor’s (MHP)
lowered the state’s rating to A- last week, with a negative outlook.
Pensions are the problem. Illinois is supposed to save enough money for
its state employees. It has not. Also, the state assumed unrealistic
investment returns on the money it did save. At the end of 2012, S&P
reports, Illinois was almost $100 billion short on what it already owes
its employees for retirement, and the state legislature is incapable of
making changes to what the state will owe future employees.
Read more: http://www.businessweek.com/articles/2013-01-31/politicians-continue-to-cash-in-on-future-savings#r=pol-ls
Read more: http://www.businessweek.com/articles/2013-01-31/politicians-continue-to-cash-in-on-future-savings#r=pol-ls
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