Stalled Illinois Pension Bill Affects Pensions for Junkmen and Junk Bonds

The Illinois House on Saturday passed a bill that gives Chicago some financial breathing room by restructuring its contributions to retirement funds for city public safety workers.
This is the latest over Illinois's debt crisis in relation to the state's pension plan. Where on May 8th the Illinois Supreme Court’s decided to overturn state pension reforms which placed Chicago Mayor Rahm Emanuel’s plan to reform two of four city employee pension funds in similar jeopardy.
That triggered a downward spiral that saw Moody’s Investors Service double-drop Chicago’s bond rating to junk status and do the same to the Chicago Public Schools and Chicago Park District. Two other Wall Street rating agencies ordered lesser drops.
The 65-45 vote sends the bill to the Senate, where Senate President John Cullerton, a Chicago Democrat, has signed on as its chief sponsor.