-- Connecting the dots between our economy, government and business --
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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$166 pension for every $12,000 earned sounds fair to me. Based on that figure if a person made $96K per year for 10 years the pension would be $1,328 per month. After 20 years the pension would be $2,656 per month and after 30 years it would be $3,984.00 per month or more in line with social security per month. If everyone did this from the start there would be no pension deficit.