-- 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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Univ of Miami Law Prof Dawson says: “Drew Dawson, a law professor at the University of Miami,
“The human impact of this is really big on the individual retirees,” Dawson said. “But this would be a big impact on the PBGC itself, financially.”
Well, No, and probably Not. Hardly any effect on retirees, zero on vast majority and life ins at age 80 is barely anything for legacy companies’ ‘ees.
And PBGC always screams that the sky is falling, but if they can earn 6% invstmt egns in the takeover assets, they won’t have much underfunding.