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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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No new gov employee should be put in a pension plan. SS for all new employees.
If you want to read the actual article, here is a link to it…
https://fixedincome.fidelity.com/ftgw/fi/FINewsArticle?id=202305041603SM______BNDBUYER_00000187-e814-dbed-abcf-fe9578310001_110.1
Public Sector Total Compensation ….. the TOTALALITY of wages + pensions + benefits while active + benefits that carry over into retirement such as subsidized retiree healthcare …… should be EQUAL TO (but not greater than) those granted Private Sector workers in jobs that require comparbale experience, education, skills, and knowledge. Given that: (1) almost nobody gets employer-subsidized retiree healthcare benefits in the Private Sector today (2) the Tier2 pensions are far and way better than the 3%-of-pay (into a 401K plan) that is all most Private Sector workers get in retirement security from their employers, and (2) SS benefits… Read more »
That can all be on your agenda when you become IL Emperor. Meantime, take a relaxant.
“there is almost ZERO chance that the Tier 2 pension is less in value that what SS benefits would be.”
Every actuary that has commented on this issue disagrees with you. This is a real issue that will need to be addressed at some point.
You “handle” shows your bias.
Please, please, please–argue the value and truth of the point made rather trying to denigrate the one doing it. Surely that’s the better pathway here.
Yes. I’m biased towards facts.
The “problem” was that while Private Sector employers realized LONG AGO that Defined Benefit pension were BOTH too costly and WAY too risky, thereby terminating them or frezing further accruals, Public Sector Elected Officials, to curry favor with the Public Sector Unions/workers (in exchange for Union campaign contributions and the favorable block votes of the Union membership) not only kept these pensions in place but continued to make them more and more generous. WHAT Could Go Wrong? The HUGE amount of unfunded pension promises (as well as the almost completely UNFUNDED free or near free retiree healthcare benefits ….. UNHEARD… Read more »
So they say that the current program has saved millions of dollars but has it really? Now the true cost is being reported and they are surprised that when you underpay eventually it catches up.
This isn’t news everyone has known about this for years, but now it’s an issue since there are only about 5-years before the bill is due. The kicker is this… should the program not pass the SS test. A lump sum payment is required to SS to make all those individuals whole. Where is that money going to come from?
Illinoisans, vote with your feet and leave this corrupt Dem cesspool of a state!!
Dems will never go against their masters the Illinois public sector unions.