As IL Supreme Court Strikes Down Pension Solution, Institutional Investors Watch Nervously

An issue that is being closely watched by institutional investors, the Illinois Supreme Court struck down legislation the state’s legislative branch had passed to fix a massive funding gap in its state pension fund. The court ruled it unconstitutional for the state to reduce pension benefits it had already promised retired government workers, forcing political leaders to start from scratch in solving the problem of a massive $111 billion shortfall.   Moody’s doesn’t change rating as a result of the pension ruling Moody’s Investors Service, which rates the city’s bonds, had not factored in the easy button solution – cutting…