Chicago in debt despite balanced budget and federal aid – Truth in Accounting

"Chicago officials are making repeated financial mistakes that any personal financial advisor would advise against...The majority of this debt is caused primarily by the city making pension and retiree health promises, but not properly funding them properly."
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Mike
4 years ago

What is the difference between a City of Chicago balanced budget and a used car with bananas in the transmission?

Jay Fled
4 years ago
Reply to  Mike

The car is worth more.

The Paraclete
4 years ago

Truth in accounting? Is that the same as ethics in business? When Lori was asked if she’d run Chicago, she misunderstood and thought it was ruin Chicago,I’m all in!

willowglen
4 years ago
Reply to  The Paraclete

She is hard wired as a progressive leftist. I think she was sincere on taking office in fixing corruption, but that, too is hard wired into the political system and she likely is working now on avoiding getting caught regarding her own activities. The problem with being such a hard wired leftist is that there is not nearly enough money to redistribute today to politically favored groups, and she cannot proceed in addressing tough problems such as violent crime because that would mean prosecuting and imprisoning groups of people which would make it harder for her to get re-elected or… Read more »

space ghost
4 years ago

why won`t u post that last comment Glen the truth will set u free try telling the truth

Admin
4 years ago
Reply to  space ghost

I don’t know what comment your are referring to but I know that all yours have to wait for approval because of past ones. You can either state your case for what you see as truth without the kind of bigoted generalities you have used, or go someplace else.

space ghost
4 years ago

Well the author of the above comment knows not what they talk bout as retired city workers have no health insurance educate yourself stop with the Fake News already

Mike
4 years ago
Reply to  space ghost

Municipal Employees’ Annuity and Benefit Fund of Chicago, A Pension Trust Fund of the City of Chicago. City of Chicago Retiree Group Health Insurance Plans Similar to 2020, there are currently two group health insurance plans that are offered to City of Chicago retirees in 2021.   The City sponsored Blue Cross and Blue Shield Plan information is available by calling the following numbers:..” “The Labor Benefit Association offers a group healthcare plan adminstered by Aetna.“ “Both of these have been approved by the Fund and require that participants sign and submit a deduction authorization in order for the Fund to deduct… Read more »

space ghost
4 years ago
Reply to  Mike

yeah Mike of which the retiree pays all the premium the City pays NOTHING Mike NOTHING try and KNOW UR FACTS

Mike
4 years ago
Reply to  space ghost

The City of Chicago retirees have a choice of a City sponsored health insurance, was the point.

Retired City workers receive various subsidies, pay various premiums depending on the pension fund (MEABF, LABF, Fire, Police), all this can depend when they retired, and there have been lawsuits, and it’s changed over time, etc.

Typical of Illinois complexity in pensions and retiree healthcare.

http://www.chicago.gov/content/dam/city/depts/fin/supp_info/Benefits/Retiree Health Plans/RetireeHealthcareInformation.pdf

http://www.labfchicago.org/retirees-and-survivors/retirees/health-insurance

http://www.meabf.org/retirees/news

https://wgntv.com/news/wgn-investigates/retired-city-workers-say-theyre-suffering-after-losing-health-insurance

http://www.ibew9.org/Uploads/UploadedFiles/cityofchicagoretireeshealthinfo_20210212081359.pdf

https://chicago.suntimes.com/2019/4/15/18407129/lightfoot-urged-to-restore-health-care-subsidy-for-city-s-oldest-retirees

http://www.fabf.org

http://www.chicagofop.org/retirees/retiree-healthcare

space ghost
4 years ago
Reply to  Mike

WRONG Mike the City offers no Health care coverage NONE ZERO DOOFUS if the pension funds do that has nothing to do with the city of chicago the pension funds is TOTALLY separate from the city those covered by the city retired before 1986 think theres many of those people still breathing Mike doubtful the lawsuits are continuing have produced nothing as of the moment so u r totally misinformed and r spreading FAKE NEWS and LIES

Mike
4 years ago
Reply to  space ghost

“Circuit Court Judge Neil Cohen has ruled that the four city employee pension funds have an obligation to provide and subsidize retiree health care with funds provided by the city, but only at levels outlined in 1983 and 1985 amendments to the state’s pension code. That guaranteed subsidy amounts to $55 a month for police and fire retirees not eligible for Medicare, and $21 for those who are. For retirees covered by the Municipal Employees and Laborers pension funds, the guaranteed monthly subsidy amounts to just $25.” Chicago Sun Times article dated April 15, 2019 by Fran Spielman, titled, “Lightfoot… Read more »

Mike
4 years ago
Reply to  Mike

Krislov Law.

Two Retiree Healthcare Litigation cases.

City of Chicago v Korshak.

Underwood v City of Chicago.

CURRENT STATUSJuly 22, 2020Appellants’ Motion for Rehearing asking the Appellate Court to declare that the statutes do require the Funds to provide a retiree healthcare plan for their annuitants and, to enforce the Funds’ previous assertion that they had fulfilled this by contracting the city to be the insure; and to reassign the matter to another judge.

The website contains many previous entries regarding the cases.

http://www.krislovlaw.com/new-cases-investigations/city-of-chicago-v-korshak-retiree-healthcare-litigation

Last edited 4 years ago by Mike
space ghost
4 years ago
Reply to  Mike

Ah Mike lots of time on ur hands in moms basement well all of ur research shows exactly what Mike Ill tell u its that the city of chicago pays for no health insurance for retirees its that simple Mike kinda like u the lawsuit is still pending having been kicked up to the Applellate Court and back to Cohens court by the way Cohens a political HACK do a little research on him his wife was n the Obama administration and they r GOOD friends with wait for it the former nine fingered mayor Emanuel who stop the health… Read more »

Mike
4 years ago
Reply to  space ghost

Once again, there are many City of Chicago retiree healthcare plans / tiers / variations.

Perhaps there are tiers and variations with no subsidies.

But all four plans (Fire, Police, MEABF aka municipal workers, LABF aka laborers) have at least one tier / variation with subsidies, as stated in the Fran Spielman Chicago Sun Times article.

The retiree healthcare plans may have different names than the pension funds; the references are to the categories of workers.

Last edited 4 years ago by Mike
Mike
4 years ago
Reply to  Mike

Pages 97 – 101 in the City of Chicago FY 2020 ACFR (aka CAFR) contain the “Other Post Employment Benefits (OPEB) – City Obligation.”

“The City’s net OPEB liability of $1,963.3 million was measured as of December 31, 2020, and was determined by an actuarial valuation as of that date.”

Rough translation, a retiree healthcare unfunded liability of $1.9 billion.

What about pensions?

The City’s net pension liability (pension unfunded liability) in the same document was $32.9 billion.

http://www.chicago.gov/city/en/depts/fin/supp_info/comprehensive_annualfinancialstatements.html

The Chicago population was 2,746,388 in the 2020 census, an increase of 1.9% from 2010’s population of 2,695,598.

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