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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 Illinois Pension Scam, and add to that Retiree Healthcare, kicked into overdrive 52 years ago on December 15, 1970 when voters approved numerous amendments to the state constitution, including a one sentence amendment about retirement benefits that has been interpreted by the State Supreme Court to include pensions and retiree healthcare. Now we have the Amendment One / Workers Rights scam as the first question on the November 8, 2022 Illinois election ballot. Included in Amendment One is the term “economic security.” Are pensions a form of “economic security?” Well the State Representatives and State Senators who approved placing… Read more »
Fund pensions first. Then identify all the social services not being funded because pensions are funded first. Follow that with clarifying any tax hike is a diminshment and impairment of everyone else’s retirement. Lather rinse repeat.
The taxpayers have made the required payments mostly via property taxes every year. Within the tax bills are payments made to each taxing body like police. In those contracts are payments for pensions for police and possibly pensions payments as a separate line item towards the bottom of the tax bill. So where did the money go after taxpayers made their payments? The taxpayer kept their side of the bargain but if the city spent the money on something else like maybe raises? the responsibility is and should be done for taxpayers. Now they come back and say you owe… Read more »
Your property tax bill showing how much you paid towards pensions is not “paid in full”. That amount just happens to be the amount taxpayers paid towards pensions not whether or not is was the true actuarial payment. Taxpayers won’t be able to hide behind the belief that they already paid for pensions. They are on the hook no matter what. Even if actuarial payments were made, if investments are not at expectations then the pensions will need more taxes to cover any shortfall. If they spent that money on something else instead of pensions, then taxpayers will need to… Read more »
When NYC went bankrupt in the 1970s NYC pension funds were backed with NYC municipal bonds!
PPF, you’re in for a rude awakening. Once again, keep your skills up to date and consider a side hustle.
“When NYC went bankrupt in the 1970s NYC pension funds were backed with NYC municipal bonds!” What year did NYC declare bankruptcy? I don’t remember reading about NYC going bankrupt. The history that I’ve read is that the Teachers Union agreed to fund 150 million from their pension into municipal bonds but the city did not go bankrupt. The federal government also loaned the city 2.3 billion with the understanding that they would defer wage increases to existing employees, cut the number of employees, as well as start to charge more (increased taxes and fees) for services. The city eliminated… Read more »
I responded to your comment Joe but it was locked up in the waiting for approval. I didn’t even post a link this time.
Yes, PPF, the spam software sure doesn’t like you. Sorry about that. We are working on it and in the meantime checking the spam folder regularly.
Not your fault Mark. I blame the spammers.
“When NYC went bankrupt in the 1970s NYC pension funds were backed with NYC municipal bonds!” What year did NYC declare bankruptcy? I don’t remember reading about NYC going bankrupt. The history that I’ve read is that the Teachers Union agreed to fund 150 million from their pension into municipal bonds but the city did not go bankrupt. The federal government also loaned the city 2.3 billion with the understanding that they would defer wage increases to existing employees, cut the number of employees, as well as start to charge more (increased taxes and fees) for services. The city eliminated its short… Read more »
PPF, you seem to think that the pension clause in the Illinois constitution will prevent any harm coming your way.
The human condition is such that everyone in society is the same boat wether we like it or not. A ship doesn’t half sink.
When the SS Ilinois hits that financial iceberg you’re going to experience imparement regardless of the pension clause.
This has even happened recently in your lifetime in an ultra leftwing system. Do some research on what a pension from the former Soviet Union (where everyone was a government worker) is worth now.
So no sources on that NYC bankruptcy where pensioners took cuts? So you agree that pensioners continue to be paid and the federal government stepped in to offer short term loans rather than watch one of the largest cities in the US drag down the economy. Somehow I believe the feds would be even more motivated to save an entire state. I’m looking at recent history and after checking notes, the feds like to step in so states won’t fail. “The human condition is such that everyone in society is the same boat wether we like it or not. A… Read more »
PPF, your facts are correct but you’ve drawn the wrong conclusion. President Ford did not want to set a precedent by bailing out NYC. NYC enacted cutbacks and pensions were not reduced. It will be a much bigger task to bailout a state like Illinois and Biden is not made of the same stuff as Jerry Ford. If Biden or more likely Harris even try to bailout Illinois it’s game over for the USA. What ever pension checks you receive will be diminished through the loss of purchasing power even if they are “Paid First.” Yes PPF, states and countries… Read more »
“President Ford did not want to set a precedent by bailing out NYC.” Yet he did it anyway with $2.3 billion loan when no one else would. “It will be a much bigger task to bailout a state like Illinois and Biden is not made of the same stuff as Jerry Ford.” Illinois is no where near going bankrupt. Are you actually under the impression that Illinois is going to default any time soon? Again, quite providing your beliefs and start providing facts. “you’ve drawn the wrong conclusion” I haven’t drawn any conclusion other than pensions are paid first and… Read more »