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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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“The plan’s funded ratio would remain below 50% until 2050 when it is to begin building to reach 90% in 2057.” 80% increase in 7 years? Where is the proposed annual employer contribution schedule (presumably created by Aon Hewitt) now through 2057? #### MEABF Contribution Payment Year – Percent Increase from prior year – Contribution in Dollars 2019 – 34% – $344,488,000 2020 – 23% – $421,988,000 2021 – 18% – $499,488,000 2022 – 16% – $576,988,000 2023 – 56% – $878,795,000 2024 – 2056 – ? – ? 2057 – ? – $2,000,000 (“almost” $2B was the figure given… Read more »