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“While the new law does provide short-term budget relief by reducing these pension plan contributions by $220 million, Chicago pension contributions will now fall far short of amounts needed to curb growth in its unfunded pension liabilities, a credit negative.”

Comment: Very significant that rating agencies seem to have started moving beyond short term liquidity and budget issues. Eventually, they will have to admit that the pension numbers are insurmountable.


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That is a good summary of coverage of Illinois public sector pensions and retiree healthcare.
Short term impact.
Too little, too late, credit rating agencies.
You blew covering subprime mortgages and you blew covering subprime Illinois pension and retiree healthcare, the latter for an astounding 46 years, since the pension sentence was added to the state constitution in 1970.
One of the many reasons Illinois public sector pension and retiree healthcare fund have not imploded…there are more games that can be played with pensions and retiree healthcare than mortgages.
Games people play, games without frontiers.