Squeezy the Pension Python

Illinois Governor Pat Quinn has a solution to the Illinois unfunded pension liability crisis.  His solution is brilliant and creative.  To solve this crisis he has created an animated mascot.  Meet "Squeezy the Pension Python" by viewing this short video:

http://thisismyillinois.com/

Not everyone is convinced that Squeezy will be able to solve the crisis.  Some of the comments can be found in this Chicago Tribune article:

http://www.chicagotribune.com/news/local/ct-met-governor-quinn-pension-reform-20121119,0,3422889.story

These quotes are from the Tribune article:

After months of promising a major grass-roots effort to win public support for reforming the state's government worker pension system, Gov. Pat Quinn on Sunday unveiled a plan that featured an incomplete online strategy, children wearing red plastic megaphones and an animated "Squeezy the Pension Python" mascot.

There were, however, no solutions offered on how to fix the nation's most underfunded retirement system.

The Democratic governor, known for a style that sometimes veers into the corny, attempted to jump-start the pension overhaul push by lauding the power of "the people of Illinois, good and true" through what he called the "electronic democracy" of Twitter and Facebook. Quinn went so far as to encourage families gathering at the Thanksgiving dinner table to "speak to each other" about the pension crisis.

The approach left some lawmakers questioning whether the governor demeaned the severity of one of the most pressing unresolved problems facing state government in Illinois. State Rep. Jack Franks, D-Marengo, called Quinn's strategy "juvenile."

"If he wants to do a grass-roots campaign, he should talk to the people directly about his proposal. But he doesn't even have one, which is why we can't get anything done. You can't follow someone who doesn't lead," Franks said.

"This has to be comprehensive reform. It can't be done in a vacuum and it can't be done with slogans and it certainly can't be done with cartoon characters," Franks said. "It's going to take some hard work."

The State of Illinois pension system's unfunded liability now is estimated to be at least $96 billion.  Please note that this unfunded liability is calculated using an anticipated annual return on invested pension funds of 8% per year.  Do you think it is possible that Illinois will be able to generate 8% annual returns?  If they generate less than 8% the unfunded liability goes up.  If there is another big down year for the financial markets the unfunded liability goes up dramatically.

The only solution to this crisis is to cut benefits to future retirees.  Illinois is so deep in debt that they may be forced to cut benefits to current retirees.