-- 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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Check out http://www.ballotpedia.org and search pension management fees.This is old data from 2012 but puts it in perspective. Compare Illinois assets /fees and returns to similar assests/ fees from Minnesota or Georgia. This is why I still say that “Defunding” is a major part of why pensions are under funded. How many hands are siphoning money out like fees and unlimited spiking prior to 2010 changes. It’s like having a bucket with many holes near the top so it will never be full unless fixed. In other words Reforms.