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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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You cannot believe anything Kifowit says, I had a meeting with her and she will lie to your face. The Tier 2 fiasco will only make the pension nightmare grow.
Place these pension issues on the ballet and let the citizens vote on possible
solutions.
I’ve checked my property tax bill and not one cent goes to the state. All local stuff including pensions for county, city, village, township employees, local school districts, library etc.
PPF is correct in his assertion that there are always more taxes and fees that can be paid. However, the continued runaway spending by the state in various forms only accelerates the death spiral where more people (usually those with money) relocate to other states, leaving the poor schmucks remaining to hold the bag.
The way I see it is that Tier 2 individuals are questionably basically on par with Social Security. Why didn’t the State then simply switch them to Social Security coverage? Quite simply, and correct me if I am wrong, by keeping the Tier 2 individuals in the system they pay into the mess that Tier 1 is. The situation was another gift that keeps on giving from Madigan et al making me wonder if the Tier 2 people voted for the Democrats after this situation unfolded. Another Madigan style band aid designed in way to garner Madigan votes and when… Read more »
“Why didn’t the State then simply switch them to Social Security coverage?” In my opinion, the state doesn’t want to give up control. If they would have made tier 2 a switch to social security they would be forced to remit payment to the federal government for the amount that is owed. They would no longer be able to legislatively change how much they want to pay into a retirement fund and would instead be forced to pay the full amount owed each and every year. Currently tier 2 employees are paying 9 percent out of their pocket for a… Read more »
Kifowit states they had hearing on “Safe Harbor requirements”, (where hearings open to public?) but seems to be avoiding answering Rep Wilhour that all kinds of additional pension “sweeteners” could be added into HB 4098 & 4099? Who in Illinois with 1/2 a brain cell wouldn’t think pension “sweeteners” wouldn’t be added if the machine can get away with it.
My conspiracy theory is Illinois machines waiting to see what going to happen with pension “sweetener” deal pending in NY? Will dopey taxpayer/voters even notice?
(https://finance.yahoo.com/news/ny-pension-costs-rise-more-181829773.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAADRKi_kXIFJocXSz2wyvXeOpcatDPVgo4dl7Q__30TW-OL0zUOedD9Spnk1H8IOX3rDJY6Wy-zhoyXihcQf9YBZPESLQviRkk2b7kIP0jZ0G0DTxdsbU9HbpCYLNn31znnYpXlThC31POrsDu6bJiaMsNwMWIm32vL4-u21qxJd8).