-- 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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One good economic downturn and these pensions are TOAST!
That which cannot continue will not continue.
What amazes me is that all these pension plans are so underfunded, yet the unions and members aren’t howling about the lack of funding. Tax increases aren’t going to keep up with the liabilities. Unless you’re nearing retirement, you have to really worry about the payouts of your pension.