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.
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