Subject: Illinois governor expected to OK $4.1 billion pension bond sale
From: "Neil Callahan" <[email-masked]>
To: "'Alexandra Stanton'" <[email-masked]>, "'Marc X. LoPresti'" <[email-masked]>, "'Biden, Hunter'" <[email-masked]>
Date: Thu, 13 Jan 2011 09:15:17 -0500

Illinois governor expected to OK $4.1 billion pension bond sale

Read more:
http://www.pionline.com/article/20110112/DAILYREG/110119968#ixzz1AvOWDhy8

Illinois Gov. Pat Quinn was expected to sign a bill approved by the Illinois
Senate early Wednesday to sell up to $4.1 billion in pension obligation
bonds to help the state pay for required contributions to its statewide
pension plans.

The legislation passed by a 42-16 vote. The bill had been approved by the
state House on May 25.

John Patterson, a spokesman for state Sen. John Cullerton, who sponsored the
Senate bill, said in a telephone interview that actuaries for the pension
plans - the $33.2 billion Illinois Teachers' Retirement System, $12.9
billion Illinois State Universities Retirement System
<http://www.pionline.com/section/researchcenter-profiles&dir=plan-sponsors&p
age=db&R=429733>  and $10.2 billion Illinois State Board of Investment
<http://www.pionline.com/section/researchcenter-profiles&dir=plan-sponsors&p
age=db&R=429732>  - will have to recertify the amounts needed to cover their
2010 contribution before a final number is determined.

Early estimates put the contributions at $2.358 billion for the teachers'
plan, $960 million to ISBI and $777 million to ISURS.

"The Senate president acknowledges that borrowing to make the pension
contributions is not an ideal move. But it was the best of the difficult
choices," Mr. Patterson said in an e-mailed response to questions. "That,
combined with the revenue moves that were approved, will put the state back
on track to restoring sound financial footing for our pension systems, our
budget and all those who do business with Illinois."

Kelly Kraft, Mr. Quinn's budget spokeswoman, said: "The governor proposed
pension borrowing (as) the least costly option for taxpayers to make their
required pension payments. We are pleased with the action of the legislators
on this bill. The governor is committed to paying the pensions. We continue
to look at the pension systems to see what can be done to make them work
better."

Read more:
http://www.pionline.com/article/20110112/DAILYREG/110119968#ixzz1AvOS2KAi

 

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Neil Callahan

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