Recent articles about pension legislation in Illinois claim the unfunded liability is $100 billion. Just a few years ago, it was pegged at $70 billion. Good to see that "temporary" state income tax increase is working out.
The $100 billion figure effectively assumes we have some of the greatest money managers in history running the pension funds. In case we don't, the actual underfunding could be much greater.
The pension reform bill will likely do little to improve the situation, but we may never find out since it will be tied up in court for years to come.
To see how it will work out, take a look at Detroit. The bankruptcy judge there recently ruled that their state constitution does not automatically shield pension benefits from reorganization cuts.