SPRINGFIELD, Illinois — In a story Sept. 6 about Illinois' pension debt, The Associated Press erroneously reported that lawmakers approved a state pension-plan overhaul last fall that would raise employees' contributions to their own retirement plans. The law actually would lower contributions by 1 percent while reducing employee benefits.
A corrected version of the story is below:
Moody's: State pension debt vs. revenue is worst
Moody's: Illinois pension debt as percentage of revenue is nation's highest
By JOHN O'CONNOR
AP Political Writer
SPRINGFIELD, Illinois — Illinois' pension liability as a percentage of state revenue is far and away the nation's highest, a major credit-rating agency says in a new report.
Moody's Investors Service reported that the state's three-year average liability over revenue is 258 percent. The next closest is Connecticut at about 200 percent.
The report averaged the Illinois percentage from 2010 through 2012. In 2012 alone, the state's rate was 318 percent.
The state has a $100 billion deficit in the amount of money that should be invested in the portfolios of five state-employee pension accounts. Lawmakers adopted an overhaul plan last fall that reduces benefits to significantly cut that debt while at the same time reducing worker contributions.
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