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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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If the pension funds of the city fail many retirees will be in deep financial trouble. Most retirees with a pension from a municipality lose most of their social security, 60%, under the Windfall Profit Provision. Many city pensioners have minimal social security benefits being paid to them. The lobbies of the police stations in a couple of years may be filled with retired city employees.
“IF” is not a choice, “When” is the only choice.
They can’t fund the existing benefits so they increase benefits. Seems rather confusing to me but I guess it is because I was schooled years ago and do not understand this new common core math stuff.
Look up money is falling from the sky.
The Chitty and the State are broke, not the change of a nickel. So, what do you do spend more money that you do not have. Run for your economic life and your family’s future.
It’s nice to see bipartisan support to allow retired Chicago police officers to retire with some dignity. Both sides of the aisle agree. 3% in these inflationary times is the least they could do.
The way the funds are being mismanaged, the corruption, the failure of the city to make required payments, pension funding holidays etc and the city retirement funds will probably go belly up in a few years anyway so the COLA deal isn’t that bad. A note to pension haters. CPD pension COLA’s are NOT compounded. The 3% increase is done after 1 year of retirement and after attaining 55yrs of age and is based on the initial retirement benefit. It never increases. No compounding.
A pension is under no obligation to keep up with inflation. It’s a monthly guarantee until death do you part. Nothing more. Live until you’re 110? Here’s your check. It might not be worth was it was when you retired at 55, but it’s here nonetheless.
A small part of me is glad that they basically codified something they were doing ad hoc anyway. Another part of me thinks any pension enhancement should be time blocked because once offered can never be taken back.
No doubt. Pensions clearly aren’t keeping up with inflation now. They also aren’t required to be reduced when the 3% increase is greater than inflation. Pensioners are also free to lobby for greater increases than they are currently allowed now.