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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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Rockford school dist 205 had the highest pension penalty spikes in Illinois since 2014 at $1.1Million (prior to that at $1.885 mil) . The last contract ratified earlier this year gave teachers approx $20.6 Mil in raises over 3 years and within that is total pension pickup at a cost to taxpayers at $1.97 mil. Then the super and others also received raises. Any spike above the LEGAL law of 6% should be given in a 401K or IRA (non taxable) or even a lump sum payout (taxable) not into the pension directly. If they do that is breaking the… Read more »