How will limiting cost of living adjustments affect the value of state pensions?

January 17, 2013

How will limiting cost of living adjustments affect the value of state pensions?

In this brief analysis, David Merriman takes a closer look at the proposals to adjust the cost of living adjustments (COLAs), a component of public employee pensions. His calculations show that the proposals made in the General Assembly in 2013 would significantly reduce the value of benefits, even for claimants with a relatively small pension and a high discount rate.


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(.PDF 349.69 KB)

Research Area: Fiscal Health of Illinois

Policy Initiative: none

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