-- 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.
SIGN UP HERE FOR OUR FREE WIREPOINTS DAILY NEWSLETTER
State Pension funds are in the hundreds of billions of dollars short. So now they are talking about increasing that number. They must have gone to the CPS for an education.
Why not commission each of the state pension plans to perform various what-if analyses of various Tier 2 enhancements? Like what if the retirement age was reduced from 67 to 62? Include a few likely scenarios in the yearly CAFR’s and see what the impact would be on liabilities and increased contributions. Why not get ahead of it now?