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SEC Reviewing Illinois Pension Predictions
SPRINGFIELD, Ill. (AP) -- The Securities and Exchange Commission is reviewing the Illinois pension systems and state officials' claims about how much future savings the state will get from reforms enacted last spring.

The SEC is looking at whether the state is using future predictions of savings and subtracting them from current payment obligations, The Wall Street Journal reported.

Governor Pat Quinn told reporters in Chicago that the SEC is probably interested because it alleged New Jersey misreported the condition of two pension systems last year. Quinn says Illinois is doing things "the right way."

The state is getting ready to sell $3.7 billion in bonds to borrow money to pay this year's obligation to five pension systems. That number is a reflection of leaner benefits for new employees lawmakers approved last year.

(Copyright 2011 by The Associated Press. All Rights Reserved.)
01 25 11 by Newsroom
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