Pension problem’s bright side? RI is giving solace to IllinoisOctober 3rd, 2011 at 11:30 am by Ted Nesi under Nesi's Notes
While bemoaning Illinois’ fiscal problems over the weekend, The New York Times’ Chicago columnist James Warren did find some consolation:
The state’s finances are in well-chronicled disintegration. When it comes to just the pension debacle, our solace is that hapless Rhode Island is in even worse shape.
We do what we can, Jim.
But Warren’s comfort may be misplaced. Rhode Island’s pension funding problem exploded in April when the Retirement Board voted to lower its investment return forecast from 8.25% to 7.5%. Illinois’ largest pension fund, on the other hand, is still banking on a rather optimistic return of 8.5% over the long term.