Wirepoint reports Third domino falls: Illinois Comptroller set to confiscate East St. Louis revenues to pay for city's firefighter pensions.
On Tuesday, the East St. Louis' firefighter pension fund demanded that Illinois Comptroller Susana Mendoza intercept more than $2.2 million of East St. Louis city revenues so they could be diverted to the pension fund.
The fund trustees said the city shorted firefighter pensions by $880,000 in 2017 and another $1.3 million in 2018.
State law sets all the rules and pensions are protected by the Illinois Constitution, meaning that in a market downturn, the pension funds may have little choice but to demand more intercepts.
Illinois cities - from Kankakee to Danville to Alton - need pension fixes before costs bankrupt them.
An amendment to the constitution's pension protection clause so pensions can be reformed and workers' retirement security saved;.
Eventually, an Illinois city will be forced to fire its entire police or firefighter force to fund pensions.
https://moneymaven.io/mishtalk/economics/bankrupt-illinois-cities-forced-to-cut-services-to-fund-pensions-0Ax39mggp0KaEu0WgOAVSQ/
On Tuesday, the East St. Louis' firefighter pension fund demanded that Illinois Comptroller Susana Mendoza intercept more than $2.2 million of East St. Louis city revenues so they could be diverted to the pension fund.
The fund trustees said the city shorted firefighter pensions by $880,000 in 2017 and another $1.3 million in 2018.
State law sets all the rules and pensions are protected by the Illinois Constitution, meaning that in a market downturn, the pension funds may have little choice but to demand more intercepts.
Illinois cities - from Kankakee to Danville to Alton - need pension fixes before costs bankrupt them.
An amendment to the constitution's pension protection clause so pensions can be reformed and workers' retirement security saved;.
Eventually, an Illinois city will be forced to fire its entire police or firefighter force to fund pensions.
https://moneymaven.io/mishtalk/economics/bankrupt-illinois-cities-forced-to-cut-services-to-fund-pensions-0Ax39mggp0KaEu0WgOAVSQ/
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