-- 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 amazes me the amount of effort the City of Chicago will expend to protect its mostly corrupt pensioners but will not expend 1/100th of its efforts to bring safety to the streets or to provide a quality education for its children. And Chicago pensions have not been able to hit their assumed 7.5% rate in eons, so given a market at lofty valuations that has traded nearly flat thus far this year ad restrictions on the investments, how sure are they that the return on the pension will exceed the interest rate on the bonds plus the bond offering… Read more »
The assumed return numbers have no basis in reality. They were pulled out of thin air and made high enough to hide the true cost of these solid gold pensions from taxpayers