SEC Launches Inquiry Into Illinois's Unprecedented 50% Pension Gap

pat quinn illinois

The SEC is looking into whether Illinois’s plan to close its giant pension gap is total crap, according to the WSJ (via Alea_).

The inquiry is focused on whether Illinois treated future savings as current reductions in the cost of its pension fund.

Last year Illinois raised the retirement age to 67 for state workers last year. This was supposed to help fix the unprecedented 50% pension gap, amounting to $136 billion in unfunded liabilities — on track to run out of money in 2018 and eat up a third of the state budget in the following year.

The SEC inquiry may poison the well as Illinois sells $3.7 billion in bonds over the next few weeks.

Here are the next 11 state pensions that will run out of money >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at