-- 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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This CTBA appears to be another brain dead leftist propaganda group.
One item that they chose to omit is that nearly 1 out of every 3 City of Chicago employees makes over 100K.
That’s the real driver of the pension crisis.
Correct. That’s one flaw. Another is that normal cost are held low because, each year, an increasing number of tier 2 workers are part of the system. Normal cost for them is extremely low, and that drags the total normal cost down and more each year. The problem, as with all our pensions, is in Tier 1, which accounts for the entire unfunded liability.