This case describes the precarious financial situation of the Illinois public pension system in the spring of 2009 along with the bookkeeping of pension plans by municipalities that are nationally more normal. In the midst of a recession, in February 2009, recently made Governor Quinn had to lay out his budget for the coming fiscal year and tackle the state's finance public pension, its biggest gratitude. Instantly, the governor needed to raise capital to make the state's annual contribution to the pension plan, and at precisely the same time he needed to think of a strategy for pension reform to stop the future liquidation of the state. Governor Quinn had a number of levers he could employ, including implementing a package of pension bonds, taxes, and employee contributions; or altering the asset allocation of the pension funds; directly tackling entitlements through a defined benefit or defined contribution plan. Through this case, students should more completely understand the hard choices along with pension accounting that many states will face because of their outstanding pension obligations.
Tough Choices for the Illinois Pension System Case Study Solution
PUBLICATION DATE: June 27, 2011 PRODUCT #: 311139-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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