Commentary: Illinois should expand pension buyout program and create a pathway for progress – Chicago Tribune*

Mary Wagoner, of the Civic Committee of the Commercial Club of Chicago: "These buyout programs are not going to solve Chicago’s problems on their own, but the city must do what it can to chip away at its pension costs. ... Implementing a buyout program in Chicago would be a signal to residents, rating agencies and investors that the city is taking its pension challenges seriously by availing itself of proven tools to address pension debt."
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David F
5 months ago

State should STOP GIVING PENSIONS and move to 401K’s like the rest of the real world.

MsT
5 months ago

Ms. Wagoner is drinking the Robert Martwick cool-aid. Does Ms. Wagoner recognize that the money to pay for such “buy outs” is additional debt–simply moving debt from the pension fund to another part of the balance sheet doesn’t change the obligation? Also, the most likely to take this offer will represent anti-selection against the pension fund. For example, people with a shortened life expectancy and single people who have little invested savings who wish to create an asset pool for a non-spousal heir. The pension fund gains when people with a shortened life expectancy stay in the fund. Any actuarial… Read more »

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