-- Connecting the dots between our economy, government and business --
Summary and audio linked here.
Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
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The article is incorrect. There is no annual 3% increase in CPD pensions. There is a one time 3% increase on pensions after the retiree reaches a specific age and has been retired for one year. The original 3% amount never goes up and is not compounded. As an example, $40,000 pension amount, initial 3% equals $1200.00 a year COLA raise. That amount, $1200, never changes, it stays the same year after year. State employees get compounded raises, CPD does not. Let the downvoting begin.