<story><title>Illinois pension benefits have grown six times faster than state revenues</title><url>http://thesoundingline.com/the-illinois-pension-nightmare/</url></story><parent_chain><item><author>ebbv</author><text>They’re not absurd pensions. They’re nothing compared to what many, many executives even of failing companies get paid.</text></item><item><author>bunderbunder</author><text>I think the paren&amp;#x27;t side of the argument also holds water, though: Paying these absurd pensions is something like a form of theft from future taxpayers.  Most of the people who will have to pay for these pensions wouldn&amp;#x27;t have been of voting age when a lot of the deals were being made, so they really had zero say in the matter.&lt;p&gt;I doubt that state employees from previous generations realized that they were agreeing to skim all this money money off of their children and grandchildren, but, nonetheless, here we are. It&amp;#x27;s a situation where it&amp;#x27;s going to be impossible to do justice to everyone. But it&amp;#x27;s going to be important to minimize the injustice. That is probably going to require some concessions on the parts of pensioners - if they don&amp;#x27;t take a scale back, it&amp;#x27;s just going to put Illinois on a downward spiral as its most economically productive citizens and businesses emigrate. That&amp;#x27;s a worse path. It will lead to pensioners suffering an even worse kick in the pocketbook, and create a lot of collateral damage for working people in the process.</text></item><item><author>pulisse</author><text>&lt;i&gt;One generation promised itself the next generation will pay them massive, undeserved pensions&lt;/i&gt;&lt;p&gt;Defined-benefit pensions are a form of deferred compensation.  State employees in the past accepted lower salaries in exchange for this future benefit.  Taking away that pension now would be theft from these people.</text></item><item><author>ComputerGuru</author><text>Yeah it’s a horrible mess. One generation promised itself the next generation will pay them massive, undeserved pensions. That first generation is still calling the shots (and voting avidly) and the coming generation is going to be stuck with an impossible tab, continuously rising taxes, lowered pensions and benefits, and a miserable situation all around.&lt;p&gt;Or Illinois could find a way to renege without filing for bankruptcy to avoid throwing out the baby with the bathwater.&lt;p&gt;Perhaps someday Madigan and his political machine will pay for what they’ve done.  But likely not.</text></item></parent_chain><comment><author>EpicEng</author><text>Ok, but I, the tax payer, am not footing that bill (yes, I&amp;#x27;m sure we can find instances of bailouts and whatnot, but that&amp;#x27;s not the norm.) Private companies can do whatever they like in this regard, I don&amp;#x27;t really care at a practical level. I care when I&amp;#x27;m paying the bill.</text></comment>
<story><title>Illinois pension benefits have grown six times faster than state revenues</title><url>http://thesoundingline.com/the-illinois-pension-nightmare/</url></story><parent_chain><item><author>ebbv</author><text>They’re not absurd pensions. They’re nothing compared to what many, many executives even of failing companies get paid.</text></item><item><author>bunderbunder</author><text>I think the paren&amp;#x27;t side of the argument also holds water, though: Paying these absurd pensions is something like a form of theft from future taxpayers.  Most of the people who will have to pay for these pensions wouldn&amp;#x27;t have been of voting age when a lot of the deals were being made, so they really had zero say in the matter.&lt;p&gt;I doubt that state employees from previous generations realized that they were agreeing to skim all this money money off of their children and grandchildren, but, nonetheless, here we are. It&amp;#x27;s a situation where it&amp;#x27;s going to be impossible to do justice to everyone. But it&amp;#x27;s going to be important to minimize the injustice. That is probably going to require some concessions on the parts of pensioners - if they don&amp;#x27;t take a scale back, it&amp;#x27;s just going to put Illinois on a downward spiral as its most economically productive citizens and businesses emigrate. That&amp;#x27;s a worse path. It will lead to pensioners suffering an even worse kick in the pocketbook, and create a lot of collateral damage for working people in the process.</text></item><item><author>pulisse</author><text>&lt;i&gt;One generation promised itself the next generation will pay them massive, undeserved pensions&lt;/i&gt;&lt;p&gt;Defined-benefit pensions are a form of deferred compensation.  State employees in the past accepted lower salaries in exchange for this future benefit.  Taking away that pension now would be theft from these people.</text></item><item><author>ComputerGuru</author><text>Yeah it’s a horrible mess. One generation promised itself the next generation will pay them massive, undeserved pensions. That first generation is still calling the shots (and voting avidly) and the coming generation is going to be stuck with an impossible tab, continuously rising taxes, lowered pensions and benefits, and a miserable situation all around.&lt;p&gt;Or Illinois could find a way to renege without filing for bankruptcy to avoid throwing out the baby with the bathwater.&lt;p&gt;Perhaps someday Madigan and his political machine will pay for what they’ve done.  But likely not.</text></item></parent_chain><comment><author>curioussavage</author><text>You really think using exec compensation is a good point to compare to?</text></comment>