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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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This is a good idea. This will allow people to move in and out of state employment without worrying about taking a pension hit. Whatever they put in, they get out plus interest.
All of Illinois pension funds are nothing but a huge PONZI SCHEMZE.
They are illegal by federal law.
The largest generational theft in the history of world. Stealing money from unborn children.
It is destroying Illinois economically for many years to come.
Snore! Take ’em to court, and let’s what happens. Otherwise, its your more blah, blah and blah with no action to change things.
Could you point to anything in the law that defines pensions as Ponzi schemes? You can’t.
Could you point to any law that shows underfunding state pensions is a crime? Nothing even requires the state to fund pensions to any specified level. It’s a state issue and they are well within their rights.
Nothing illegal about it one bit. In fact, Indiana teachers retirement system was pay go until the mid 1990’s. Many of our other spends don’t have set aside funding. We just pay as we go. While that’s not fiscally prudent for pensions, it certainly isn’t illegal.
Underfunded pensions are Ponzi schemes as assets are actuarially insufficient to cover earned benefits without an infusion of new cash, which in the case of public sector defined benefit pensions is an infusion of taxpayer cash. The Illinois state pensions are not simply underfunded. There is an extreme record of numerous abuses and lack of honest effort to properly run a defined benefit public sector pension. In large part that is due to the public sector union – politician – pension racket. One key to Michael Madigan’s success was the result of how the pensions were handled, be it legal… Read more »
Yada, yada, yada