-- 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 admire the spirit and intention of the authors, thsi piece is very well done. But ultimately this work falls apart when you realize they still are pushing the fantasy that defined benefit plans are anything other than a wish and hope strategy. And by the same token they way the writes casually disparage 401K plans, is ridiculous. However as indicated most of this body of work is very well done, however there are a host of reasons why defined benefit plans are a bad idea. I just wish the authors were willing to admit that aspect is beyond the… Read more »