-- 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.
SIGN UP HERE FOR OUR FREE WIREPOINTS DAILY NEWSLETTER
Mike, good question why we don’t have a new report. Last one dated as of 12/31/13 and it’s in particularly incoherent form. Gotta hide that ball while giving a pay increase.
I thought the county was negotiating for an increase in the employee pension contribution percentage? Or does the ILSC ruling mean you cannot raise the pension contribution rate because that counts as “diminished or impaired”?
Hard to determine what “additional 1 percent toward health care” amounts to with no context given. How much do they pay today?
I believe you are referring to Preckwinkle’s pension reform proposal that would provide for both reduced benefits and increased employee contributions. I think it’s clear that’s DOA because of the Supreme Court ruling.
The additional healthcare contribution in this, which is different, is probably OK because it’s part of a larger pay increase and presumably will be agreed to by the union.
The Cook County Pension Fund (CCPF) was 56% funded as of 2013. 2014 figures have not yet been released but should be shortly, aren’t they usually released by now? Either freeze raises until the pension is fully funded, or cut pension benefits, do something. Instead it’s have the cake and eat it too mentality. Reforms are never substantial enough or fair to the taxpayer. There is a Tier II for CCPF for those employes beginning their career January 1, 2011 or after, but reforms were not very substantial. http://www.cookcountypension.com/retiree_benefits/tier_2_retirement_annuity1.aspx CCPF is more officially known as County Employees’ and Officers’ Annuity… Read more »