By Mark Glennon:
Personally, if I were a trustee of an Illinois pension, I’d be cutting current payouts to ensure that something is left younger retirees who will be facing crisis. There’s nothing in the system for them, especially Tier 2 current workers, for whom not a dime is set aside. Textbook duties of a fiduciary include treating all claimants equally. Instead of honoring that duty, pensions are bleeding out full payments, leaving later claimants with ever-diminishing hopes in system where benefit cuts are inevitable.
That’s not to say I’d expect an Illinois court to agree with me, which I wrote about earlier. I have zero respect for how Illinois courts have dealt with our pension crisis.
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