Illinois Pension System Going Down

Spiraling down with no end:

GARS, the Illinois General Assembly Retirement System, is only 13.52% funded, down from 17% funded in 2013. How long can GARS last?

Meanwhile, Illinois has accrued a combined net pension liability of roughly $130 billion on which it assumes a 7% return.

Effectively, that is an interest liability of $9.1 billion a year even though that liability technically does not bear interest.

Violations of Expectations send amygdalae into high gear. So not only will these people see the stress of shortage and uncertainty, they will also feel the sting of how it was not supposed to be. When these pension systems go down in the Apocalypse, you will see epic levels of amygdalae, and high amygdalae is what provokes wild behavior.

Those pensioners will be a real wildcard, and I would not want to be the politician who screwed them.

Thell others about r/K Theory, because it reduces violations of expectation.

This entry was posted in Amygdala, Amygdala Hijack, Anxiety, Economic Collapse, ITZ, K-stimuli, Politics, Psychological Manipulation, Psychology. Bookmark the permalink.
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7 years ago

[…] Illinois Pension System Going Down […]

Karl
Karl
7 years ago

I doubt that the collapse of pension systems will matter much because the people affected by it are by and large too old to matter much when the apocalypse comes. Sure, in the present system they can vote, but how long do think will it last that voting might matter? They can’t riot, they can’t fight, they can’t offer much work.

Anonymous White Male
Anonymous White Male
7 years ago

Most pensioners are older individuals. I know that, in the past, politicians have been afraid of retired people on SS or pensions because they vote, don’t have to spend much of their money on debt, and have the time to make themselves politically active. However, I watched how easy it was for the left and the establishment to shut down the Tea Party, which consisted mostly of older Americans. Older people are more frail and spend much of their time somewhere in the Medical system. They are insecure about themselves and the economy. I feel that they will be the easiest sector to cow. They would accept a lesser pension if it was guaranteed. Or, rather, if they were told it was guaranteed, subject to review in 2 years. Young anti-fa’s, blacks, and anarchists, none of which are real men, will enjoy kicking oldee butt.

Pitcrew
Pitcrew
7 years ago

Extrapolating the funding means that IL won’t have a pension system by 2030, but one could make the argument that withdrawals will accelerate as funding goes lower. It will be interesting to see how IL coughs up $10B a year right as Chicago is going broke. The Teachers Unions may have to find other lines of work.

Anonymous White Male
Anonymous White Male
7 years ago

I submitted a comment earlier. It said submitting reply. The reply is not there. I am having trouble posting at another site and I wonder what the problem is. Is there an issue I should no about?

Anonymous White Male
Anonymous White Male
Reply to  Anonymous Conservative
7 years ago

Thanks.

Maple Curtain
Maple Curtain
7 years ago

Ah, but “we” keep pretending that these pensioners aren’t the authors of their own misfortune. All of these politicians are democratically elected, and all of these people chose to, at best, allow them to give the farm away for two generations. Where is the honesty in American public life? Who projects a 7% return on pensions in an economy of 0% growth? Dishonest people elected by dishonest voters, that’s who. Not much better up here in the frozen north, but at least our parliamentary system provides for accountability – we can throw the bums out – and our public pensions, having been reformed, are on, not solid, but much better ground.

Man in the Middle
Man in the Middle
7 years ago

I’m a retiree of one of the other Illinois state pensions (SURS, the one for state universities.) It’s apparently still in better shape than the report here for legislators. But I’m sure the legislators will make sure the entire state goes belly up before giving up a single penny of whatever they feel owed to them in their pension.

Man in the Middle
Man in the Middle
Reply to  Man in the Middle
7 years ago

Update: The current funding of SURS as of June, 2016 is 43% – not good, but thinking only of myself, may well be enough to see me through my remaining years.