-- 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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It mentions actuarial rate of return for calculating interest at 6.5%-Mark, what is the real rate of return? Wondering how much the attempt to only invest in socially responsible companies has affected ROI.
Chicago teacher pension fund has earned 8.34% over the last 35 years and 9.5% over the last 10. Easily beating the 6.5% expected rate of return.
Chicago is headed for bankruptcy, but Chicago will not cut wasteful spending and stop patronage hiring.