by Jonathan Ingram
Everyone’s heard about Illinois' huge unfunded pension liabilities. But did you know that the state has another liability, totaling $44 billion, for retiree health insurance?
The state hasn't set aside any funds to make those future payments, and worse yet, many retirees contribute little or nothing to their health insurance premiums. In the state’s largest retiree health program, for example, retirees only contribute an average of nine percent toward their premiums. These overly generous benefits are growing two and a half times faster than state revenues and will work in tandem with rising pension costs to crowd out valuable government services.
Last week, the Institute proposed fair and practical solutions to fix the retiree health system. Our solutions reduce this enormous burden on taxpayers, while still rewarding employees for lifelong service, discouraging early retirement and protecting low-income retirees. To learn more about our solutions to this growing problem, read the full report.
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