What’s the Idea Behind Public Pensions?
A pension is a payment made by an employer to a worker upon retirement. The word itself comes from the Latin “pensio” (“a payment”). Pensions can be provided by private sector or public sector employers, although in recent years, public sector employees have been more likely to receive pension benefits.
Pensions have been used by governments dating back to Ancient Rome to attract and reward civil servants and aid them in retirement. Public pensions in the United States predate the Revolution. And in Illinois, pensions were issued to teachers as early as 1915.
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Anatomy of a State Pension Crisis
Illinois pension systems have been underfunded for the past SEVEN decades. When the crisis began – World War II was raging, Republican Dwight Green was in the Governor’s Mansion, and the current Governor – Pat Quinn – wasn’t born yet. In seven decades, 12 Illinois Governors, 13 House Speakers and 12 Senate Presidents of both parties failed to fix the problem.