Local pension cash is running low. Soon, munipalities will have to fully account for their unfunded liabilities, rather than just report their pay-as-you-go expenses, on health care benefits as well as pensions. Of course, with retirees, it's a double cost. (See my earlier post Pension Reform in your Neighborhood) Story in the Sun Times here.
It is of course, also an issue for the states (See post on Pension Pain), and Illinois Governor Blagojevich has made the problem worse by continuing to underfund the state's pensions. Tribune story here.
Reform with portable 401K plans is a promising option. But Blagojevich is not the guy who can get it done. He blew it.
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