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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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Could there be a Federal bailout structued as insurance, as with the PBGC? Let those whose pensions are underfunded opt in. Cap pensions at some dollar amount similar to PBGC guarantees and require the individual to sign a release of claims to a Chicago pension. Require pension system to transfer the individual’s “share” of pension system funds to the insuring agency. Pension millionaires would not likely agree to this, but the system liabilities and assets would decline and the pension millionaires would either pound sand or take what they could salvage. If they don’t like it, they could hire and… Read more »
Divide and conquer? Maybe, it’s a winning strategy. Ultimately, though, that implies the ones who gain in the short term might become the meal for the next generation of workers to devour as well in yet another reshuffle years later. So, it seems there might be a lot of unions who will push against your plan and have significant allies among the younger workers. It’s a possibility but maybe not a probability.
Instead of providing immigrants with wheelbarrows full of money the pensions should get that same money. Like it or not those pensioners were promised those funds and lawful debts should be taken care of before some new vote buying plan.
The pension system is DOA. No chance in hell it will survive for the long run. Not enough money in the world to fund the overly generous pensions for 30 or 40 years. Run for your economic life.
I’m confused. It’s interesting that the two bills mentioned in article are only for Chicago Fire pension changes? I thought from previous articles I’ve read proposed changes would apply to Cop & Fire TIER II pensions? It seems the bigger picture is City, State & Municipalities have to make changes to TIER II pensions to meet at minimum “safe harbor” requirements. Do these two bills for Chicago Fire pensions simply address meeting “safe harbor” requirements? Or go way beyond those increase requirements and get rid of TIER II all together and make Chicago Fire pensions compatible with TIER I? If… Read more »
Gold plated, fraud ridden pension system is just the latest illustration of how unions are the cancer that is killing Chicago and Illinois
Is it the Unions fault or the politicians who exactly write it in stone