I think that this fits the definition of unsustainable:
Currently, Illinois is last in the nation in funding its retirement system, setting aside only 38.3 cents (see p. 23, table 4) for every dollar in pension benefits it promises its retirees. (Many experts recommend states set aside 80 percent of their retirement costs, at a minimum.) The state currently has $126.4 billion in pension liabilities, and assets half that amount.
These runaway pension benefits have consequences for Illinois taxpayers. According to the Illinois Policy Institute, an average Chicago household in 2020 will have to pay $3,369 per year for local and state government-worker pension payouts — up 119 percent from the current $1,539. Pension costs in the next Illinois budget will total $4.2 billion, swallowing up nearly two-thirds of a recent prodigious tax increase signed into law by Democratic governor Pat Quinn.
Yes, we hear the hue and cry of "HEY! I was promised that!" and demand that taxpayers honor the promises of long ago politicians that made stupid promises or mistakes.
Think of it – an average Chicago family pays:
- $128 now
- $280 9 years hence.
That’s a car payment. Or an entire week’s paycheck (or a really good portion of it). And what do you say to that family – too bad, fork it over?
What is that tipping point, when you are working more for others than what you can give to your own family? Seriously, do the retired workers actually expect mothers and fathers to give more to them than to their children?
There comes a point in the private sector when unit costs (either per unit or per hour), the company gets shut down. Problem is with government at any level, it seems that few are willing to act to lower the costs quickly enough (all you have to do is be at a Budget Committee meeting and hear the howls of "BUT THAT’S A PAY CUT!" and public workers seemingly expect taxpayers to readily lower their standard of living so that they can continue theirs?
Unfortunately in many areas, that tipping point IS here – and there is going to be nothing but more wailing from the public sector as globalization finally reaches government.
