-- 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 only business worth investing in is U-Haul. So many people are fleeing Illinois and it is increasing at an increasing rate. Greedy cops, teachers and firemen have destroyed the quality of life for generations to come. There is a pension time bomb going off and the only way to avoid it is “run for your economic life”. In a matter of 30 years Illinois went from a great to live in, to a great state to run from. Shame on greedy PPF and the likes of him.
Ever hear the term ‘one trick pony?’ Those ‘greedy cops, and firemen’ were one call away when you needed them, yet you have repeatedly branded them greedy, thieves, and lazy. BTW – those ‘greedy thieves’ paid in to their pensions for decades – just as we non-greedy paid into and are, or are expecting to, be collecting social security benefits. Are SS pensioners greedy thieves too? And, yes, I realize that IL state pension benefits are much higher than SS benefits, but so were the employee contributions. I get your point, PT, but your persistent condemnation of first responder pensioners… Read more »
Always follow the money. Who is getting it? They are the ones that are hurting us. The pensions are far too generous, and it is unsustainable. It is causing a mass exodus. The present value of the pensions is equal to $1 million to $5 million. The unions thugs and the politicians sold out to the Lackie government employees for votes. Now most of the politicians are living the good life in Florida or Texas, anywhere but Illinois. If teachers were paid for by performance just what would the make, then. All the cops and firemen do is paperwork and… Read more »
Pension reductions would solve a lot of the problems. A full year’s salary plus 3% COLA is completely insane.
I haven’t run into any government pensioners who begin their retirement with a full year’s salary. More like half a year’s salary. But my universe is limited, so perhaps there are some circumstances when a pensioner begins with a full-year’s pay. It is – the ‘miracle’ of compounding interest that’s hurting the funds (along with politicians’ mismanagement and under funding). After 40 years a $40K/year pension compounding at an annual 3% will grow to over a $70K/year pension. At 20 years the aggregate benefit collected will exceed $1 million. A change to COLA could improve things – but will that… Read more »