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Tough Choices for the Illinois Pension System Case Solution & Answer

This case describes the precarious financial situation of the public pension system in Illinois in the spring of 2009 and the accounting for pension nonfederal municipalities more generally. In February 2009, in the midst of a recession, the newly appointed Governor Quinn had set its budget for the next year to address the state public pension underfunded, their major responsibility. Immediately, the governor needed to raise funds for the state’s annual contribution to the pension plan, and at the same time I needed to arrive at a plan for pension reform to prevent future failures of the state. Governor Quinn had a series of levers that could be used, including changing the asset allocation of pension funds, combating rights directly through a defined or defined contribution, or set? Benefits? implement a set of pension obligations, taxes and employee contributions. Through this case, students must understand pensions and the difficult decisions that many states will face because of their outstanding pension commitments.
by
Robert C. Pozen,
Brij Khurana
Source: Harvard Business School
19 pages.
Release: June 27, 2011. Prod #: 311139-PDF-ENG
Tough choice for settling pension cases in Illinois

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