Analyzing the IL pension deal [AUDIO]
More pension fun from Tuesday morning's show, this time with John Tillman, CEO of Illinois Policy Institute. We asked him about many of the details of the proposed pension deal, including the fake defined contribution option that's inside:
It's a fake 401k plan to seduce Republican votes in the legislature. [There's a] provision that says they can claw all that back -- the money you put it, the money that state put in, your investment returns -- put it back into the Tier 1 system that's bankrupt, and put you back into a Tier 1 system should a future legislature decide to do that.
In short, if you're a public-sector worker and choose the 401k option... it's still not your retirement fund. The state can seize the assets, if it sees fit, to fund the regular pension program. And we we know from past precedent, Illinois Democrats are not shy about using fund sweeps for virtually any reason even if it's from charities.
Here's the full interview with John. 401k chat is around the 10-minute mark: