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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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Just once I would love to see a reporter breakdown, in dollar amounts, what the same person would receive under a Tier 1 pension, Tier 2 pension and Social Security. Just once. That would go a long way toward explaining what is trying to be accomplished.
Yup, that would be good for WP or IPI to give examples. But also complicated with so many factors with the 3% compounding, etc: which Tier II “fix’ plan is considered. On Greg Bishop/ Illinois in Focus I believe he stated there are currently 4 different TIER II “fix” bills floating around more or less turning TIER II back to TIER I. Minimum Safe Harbor “fix” or the $30 bil “fix” HB5909 in this article which basically scraps TIER II and returns to TIER I? IPI tried to give example in this article (https://www.illinoispolicy.org/illinois-needs-responsible-tier-2-pension-reform/). They site yearly Tier II pensions… Read more »
The $30 billion Tier II “fix” ONLY applies to pension benefits accumulated to date and not future pension benefits? What would future costs be for “fix”? Also, the $30 billion “fix” doesn’t include City of Chicago, CPS/CTU and a ton of other municipal pensions…..in Illinois crazy byzantine 7,000 units of gov
Slowly reality leaks out… earlier the machine (Kifowit, Martwick, others) was peddling to the few dopey taxpayer/voters that pay attention the TIER II “fix”: would only cost $6 billion. not meeting “safe harbor” somehow means a career state AFSCME employee would receive a pension less in total $ per yr than SS. When in reality, your still walking away with existing Tier II with a guaranteed upper-middle class retirement income light-years ahead of anything you could hope to get with SS. The press coverage is horrible for such an important issue that behind the scenes public sec unions are pushing… Read more »
It should say “It could cost the taxpayers $30 Billion”. Most likely it will be higher than that, it almost always is much higher.
It’s always about squeezing the Chumbolones for more money. Zero reform.
Bankruptcies of these plans are preferable, unless you’re one of the ‘educators’ who retired with a six figure state pension.
The state is responsible for the debt regardless of the plans funding and the state can’t go bankrupt.
And on cue, as Railroader said, one of the public union members chimes in. Well done.
Where? I’m a non-union guy.
Yes, you are. You are a liar.
You admitted on Cap Fax that you get an IL public union pension. I saw it. You wouldn’t be arguing 24/7 like you do for unsustainable pensions if you didn’t, either. It’s very obvious. Liar.
Not sure why have all this animosity towards my comments but I was stating a fact when it comes to pension debt. Believe what you want but no need to not be civil.
You are lying. You are RNUG, and you posted about your pension there. I have seen it. You are a liar, and I am 100% correct. You spoke about your PUBLIC pension on Cap Fax. The fact remains you would be a total loser arguing about public pensions when you don’t even get one. It would make no sense, but it does make sense since you get one. I am well aware not all pensions are public, and I am also well aware that you are a liar. You have a pension that in time will be cut, by the… Read more »
I’ve never wrote that because I don’t have a pension nor am I in a union. I comment on it because the debt is an issue for everyone not just those with pensions. I also made comments yesterday about the ban on birthright citizenship. It doesn’t pertain to me yet I still offered up my opinion. I also stated that I would support ending it but didn’t think it would come from an EO. Just because I want something to be true doesn’t make it so. The courts don’t care about your feelings or beliefs. Also, could you tell me… Read more »
You are a liar, and I have nothing else to say to your lies after this comment. You comment on public pensions all the time here and on Cap Fax. You are pathetic.
Illinois currently can’t file for bankruptcy, but Congress can amend the federal law to allow states to do it. Amending the law was talked about during Covid. It is a long shot, but it could be done.
The pride to be an Illinoisan in the first state to file for bankruptcy would be unfathomable.
Yep. When the money runs out, and there is no realistic way to pay for it, they will allow states to go bankrupt. It will happen because math always wins.
Garbage. Illinois taxpayers owe the Public Sector Union pensions jack squat. All Illinois pension money is the result of Public Unions bribing politicians and are thus criminally ill gotten gains. Votes and campaign cash in exchange for absurd wages and pensions. Quit Pro Quo. Taxpayers owe nothing to this multi decade organized criminal collusion. When Illinois becomes financially insolvent the Public Union Pensioners and their co-conspirator politicians are dumped to the back of the line. Most Illinois taxpayers understand this fact. Stomp your feet and say you are OWED this money. You stole it fair and square. Enjoy the Gravy… Read more »
In time the pensions will be cut. RNUG can then move to the nearest ditch.
I don’t have a pension so you won’t get your wish. Seems like a very strange thing to hope that firefighters, teachers and other life long workers would be destitute. Someone must have hurt you pretty bad. I also hate to break it to you, if the state were to ever be allowed a bankruptcy, bondholders, services and taxpayers would end up shouldering most of the burden. Again, just an opinion based on historical bankruptcies involving other government entities. Pensions may be forced to take some kind of cut but nothing that would leave them living in a ditch. I… Read more »
RNUG, I do think you should confirm whether you are the other RNUG and, if not, choose another name. Imposter names forbidden.
I’m not an imposter Mark but I have no problem changing my user name for your site. I’m not looking to upset anyone over a name. My name moving forward will now be RICH. Since I’m not a union man I’ll change that to individual and because I don’t have a pension I have capital holdings. I hope this helps.
As you wish. Rich, eh? That should make you really popular around here ; )
“Lol”…!!! 😉
Enjoy the massive cut to your public pension. IL will be in such bad shape that it will be massive. Enjoy! Mark, this is the real RNUG, and he said he has a public pension on Cap Fax. He is lying.
Keep in mind that the state’s bonded debt is tiny compared to pension unfunded liabilities — only $30B or so. So, slashing bonded debt wouldn’t make much difference.
RNUG is certainly RNUG, but he is an imposter as far as pretending not to be a public union stooge.
I agree. I’m not advocating cutting bondholders but they would more likely see a larger cut. I also mentioned services and taxpayers shouldering most of the burden. I honestly don’t think bankruptcy is going to happen for the state, I was just pointing out that pensions typically sit in a favorable position if it were ever to happen. The state can continue with the annual required payments and we will be 90% funded in 20 years.
Smartest guy in the room speaks and nobody listens to its nonsense
Such an angry person. You must have been or are a very unsuccessful individual