While Illinois Gov. Pat Quinn’s proposed pension reforms would help stabilize the state’s pension system, according to Moody’s Investors Service, analysts warned of the negative effects it would have on some local governments, since it requires school districts to start shouldering some of the burden for funding their teachers’ pensions.
Currently, Chicago Public Schools is the only system required to cover the employer’s share of pension funding. Quinn’s pension overhaul calls for other districts to also begin contributing to teachers’ pensions. He has said the change could be phased in over several years to give districts time to adjust their budgets.