-- 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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I have a question for the readers of wire points.
Are the legislative pensions considered a constitutionally protected contractual benefit that shall not be reduced? They certainly do not have a signed contract or union negotiated contract as a state employee.
I’m pretty sure if they’re covered under the Illinois Pension code the pension protection clause will kick in and cover them too.
Good question. I am not aware of any reason why they would not be protected, and I have not yet seen any explanation for how they can be cut, as is now being discussed.