Illinois’s Pension Funding May Weaken Further, Moody’s Says
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Illinois, which has the worst-funded pension system among U.S. states, may see it deteriorate more even if it sells bonds to close the gap, Moody’s Investors Service said.
Moody’s issued its report today after the state last week sold $1.5 billion of bonds backed by payments it receives from a 1998 settlement with tobacco companies. The proceeds will go to pay $1.18 billion of bills for fiscal 2010, which ended June 30, Moody’s said.