Will Pritzker's consolidation proposal actually be effective?

The Annie Frey Show
October 16, 2019 - 4:07 pm

Budget director at Illinois Policy Adam Schuster discussed Pritzker's proposal to consolidate over 640 southern Illinois fire and law enforcement pensions.

One of the first plans the governor has proposed that actually has an upside.

What to know from Illinois Policy: 

  • Consolidation of pension funds has two main upsides – larger pools of assets can achieve greater returns and reducing administrative costs by scaling the systems.
  • Pritzker's task force estimates that higher investment returns could bring in an additional $160 million to $288 million in annual investment revenue – potentially reducing pressure on property tax payments. 
  • The greater risk to taxpayers would be for the consolidation proposal to pass and be used as an excuse for Springfield to wash its hands of the pension problem and pretend they’d fixed it.

Read more about this issue HERE.