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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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Between this column and the upcoming Supreme Court decision making gay marriage illegal once more, it is a good week for common sense and decency.
It’s time we ignore all the trolls and shills. In real life, outside the reach of duplicitous news and online trolls, Johnson and Pritzker are universally hated. Here’s a clip of Johnson getting booed off the stage in front of his core base.
https://www.newsbreak.com/jonny-c-224527595/4167490894802-chicago-mayor-brandon-johnson-booed-and-cursed-out-at-lgbtq-market-days-event-as-his-approval-hits-historic-low
Wonder how all the other Tier II employees feel about this ‘special’ group’ getting a ‘special deal’?
Obviously GGGGGGGGGGGREAT!!!, because in a year or two they’ll be getting the same deal.
When you decide to move out of state, first find out where PPF is moving to and do not go there. Go to a state that is fiscally responsible. Enjoy life not enslaved to the public sector greed. Leave the fruits of your labor to your family not to the state.
What is a PPF? My wife and I are looking at relocating, possibly to somewhere warmer. Have been reading about assessments, liabilities and whatnot but never heard of PPF. Thanks for the help – Dan
PPF is a poster on here that is pro union / pro government.
I haven heard he was moving, I always assumed he would be the one to turn off the lights in IL.
We moved to Colorado. Weather is beautiful.
I’m not “pro union” or “pro government”. I am an advocate for the US Constitution as well as individual and State’s rights. I advocate that the government is unable to steal from retirees in order to lower taxes. I would prefer less government and less spending but I am pro following the will of the voters as long as it doesn’t violate other’s constitutional rights. Since I don’t follow the group think mentality that public employees should be cheated, that somehow confuses readers of this site to believe I’m pro government. Instead, I want voters to deal with their economic… Read more »
Recently I went to Walmart and purchased a marked down apple pie. Upon checking out I was offered an option to buy now or pay later (bnpl). The pension situation is similar in that we are now in the “pay later” part of the way the situation has been deployed and people don’t like it. It would be like my having happily ate the pie but later being unhappy that I have to pay for the pie. I have tried to explain this to people to no avail. What is so hard to understand? I paid for my marked down… Read more »
Fair enough, “pro” was probably too strong of a word. While the pension mess was all legally created, IL and Chicago have the stench of crony capitalism where the political class and those closely associated with government enrich themselves at the expense of those that are not. Legal doesn’t make things right. I feel bad for those pensioners who are collecting on the lower end as they will be the ones most impacted when the system collapses. I don’t think they realize the risk their leadership has put them in via supporting politicians in the past who shorted the funds… Read more »
The rational Illinoisans running for the exits will continue.
I left over 20 years ago as I had a much better job offer and I saw a lot of this coming.
My back account is $250,000 fatter because of my smart financial decision!!
$250,000 over 20 years is not really that much money. Congrats in the new iob and home though! Can’t wait until my kids are off to college and we can move, too.
Seriously…the dollar amounts some people brag about as being ‘substantial’ are frankly embarrassing.
I disagree! We will all pay not just all Chicagoans. The ultimate goal of the Democrats is to spend the State of Illinois into poverty and then spread the cost throughout the nation. How many citizens in Chicago actually pay taxes. Think about Metra and Pace, earlier attempts to shore up the CTA. How often do you ride the Blue Line? Think of all the fraud surrounding COVID-19. How many fraudsters were public employees? What percent of the stolen money came from actual Chicago taxpayers?
The taxpayer will pay dearly for this one for many, many years to come. Maybe this will be the straw that broke the camel’s back, and you will leave the state to get away from all this madness.
They should pay. Every single elected representative voted for this increase. Your elected leaders clearly believe that this is what the voters wanted. Now it’s time to pay.
Our elected leaders clearly understood this is what would get them support and donations from public unions.
“Lord Mark Malloch-Brown, George Soros and Mitt Romney control over 90% of electronic voting machines in the U.S. … Further digging discovered that the “OpTech” software engine inside Smartmatic was ordered by the Obama-Holder Justice Department to be deployed in all electronic voting machines used in the U.S. including Smartmatic, ES&S, Diebold, Sequoia, Dominion and Hart InterCivic.” – Douglas Gabriel
You need a better argumement than constantly “this is what the voters wanted, and the pols delivered”. It’s an easy cop-out to give you cover to follow up with, “now cough up the cash”. I know that you know (or at least I hope you do) there is so much more to political machinations than, “Yay! Democracy!”. If we all believed that the pols were working off the people’s will, there would be no need for sites like Wirepoints.
100% correct. “It’s what the voters want” is an easy, sanctimonious cop out to cover for the money grab that public unions have been operating for years.
I didn’t benefit from this legislation so I don’t need any “cover” to make them “cough up the cash”. Every single elected official in the GA voted for this and the Governor signed it. Now the government must pay. That’s not a cop out but instead just common sense. If the voters want more spending then the voters will end up paying. That’s the way it is and that’s the way it should be. Also, I don’t need a “better argument” than this is what the voters wanted. If I’m wrong, voters will toss the current elected leaders out of… Read more »
The problem with your position is that voters are ill-informed and/or fickle. Your position locks in an action that voters approved once upon a time — and on which they might well reverse themselves — by cloaking it as a “contract right.” True, perhaps, that in drafting the constitutional provision some proposers were sufficiently astute to know that the language could have long-term consequences. But it’s unrealistic to presume that many in the constitutional convention and most voters at the time were ignorant of and uninformed about the consequences that followed. This notion of “act in haste and repent at… Read more »
“[C]ontracts for lifetime or permanent employment are unenforceable” Agreed. That’s not the issue when it comes to pensions. I also made no such claim so not sure about your point. The state or city is free to terminate employees. What they are not allowed to do is short people for wages and benefits for work already performed. You don’t get to hire people to perform labor and then try to take the high ground by not paying them. Also, your argument that the voters are too stupid to know what they are voting for is a dangerous. Should we not let… Read more »
You’re saying that pensions aren’t part of your employment contract?
My point is that employment-related promises can’t be fixed for the duration of employment. Salaries and benefits may be increased or decreased through collective bargaining, for example.
I said voters were uninformed. That’s different from stupid. Most voters don’t know what an actuary is or does.
I won’t try to explain the statute of frauds or the rule against perpetuities — common law rules that endure. You should read up on them.
Thanks for not explaining something that doesn’t apply to pensions. I would suggest you read and learn about the Illinois Supreme Court ruling instead of grasping at straws. You can also then learn how rules against perpetuity don’t apply to government pension contracts.
I’ve also noted that you didn’t call the voters stupid, just ignorant. You still haven’t answered my question as to who should decide these things if not the voter?
It’s RULE against PERPETUITIES (there’s only one) and I have more to do than read Illinois court cases. I’ll just wait for the test case that will void the pension trusts and distribute the assets to beneficiaries while watching the beneficiaries fight for the assets. Are you conceding that most voters are ignorant about the topics in dispute? I do not favor having complex issues decide by those who know nothing about them. Should the people vote on my appendectomy or everyone’s abortion? What’s your view of the Texas law? How about the Saskatchewan secession proposal? It’s not a yes… Read more »
Additional observation: “The rule against perpetuities in Illinois law states that a trust cannot continue indefinitely, and any provision that violates this rule is not deemed void but is terminated at the end of the perpetuities period. This rule is still in effect, and recent discussions, such as the Langbein debate, highlight its significance in trust law. The Langbein case has been referenced in discussions about the application and rationale of the rule against perpetuities in Illinois.”* *A.I . summary of Illinois law quoted in Google search today. Further, a court may not repeal a common law rule or principal.… Read more »
So you can use AI but you didn’t bother to ask it why the Rule of Perpetuity doesn’t apply. Why are you so lazy? Didn’t want to find out the truth? Another problem of the Illinois voter. Let me help you out so you can reduce your ignorance on this subject. All of the information provided below is from ChatGPT 5.0 Common-law RAP applies only to future contingent interests in property — typically in real estate or trusts. It was never meant to govern contractual debts or statutory entitlements, like pension benefits. A state pension is legally treated as: A contractual right (in states with pension-protection clauses like Illinois), or A statutory… Read more »
A cynical rule one learns in law school is “you don’t make me mad when you sue my client.” Let’s pretend I’m a lawyer for taxpayers and you are a lawyer for the government and or a public union. Each of us needs to advocate vigorously for his (her?) client. As pointed out in another reply, Illinois has a specific statute applicable to when the RAP applies and doesn’t apply. Unlike the laws in other states, the Illinois statute is relatively limited in scope. IF the RAP applies to the state government, I don’t think that statute covers the situation… Read more »
My apologies for retyping it incorrectly. It still doesn’t apply to public pensions and you either know it or are being purposely deceitful.
You just keep waiting for that test case, or whatever magical make believe event helps you cope. In the meantime, pensioners will keep cashing those checks that increase 3% every January.
Authority?
To assist you, the Illinois statute says the Rule does not apply to “qualified perpetual trusts” defined as follows: "Qualified perpetual trust" means any trust created by any written instrument executed on or after January 1, 1998, including an amendment to an instrument in existence before that date and the exercise of a power of appointment granted by an instrument executed or amended on or after that date: (1) to which, by the specific terms governing the trust, the rule against perpetuities does not apply; and (2) the power of the trustee (or other person to whom the power is… Read more »
The pensions will go bankrupt at some future date. They are too big and too onerous. There will not be enough money to reasonably govern Chicago and/or IL with the increasing pension liability. The natural and expected outcome is bankruptcy, pension buyouts, and a new system. You say “it’s time to pay.” Maybe, but for most of the last 20 yrs, the pensions are not getting sufficient funding. The same elected officials that voted for it aren’t funding it. It is clearly what SOME of the voters wanted, but it’s hardly unanimous among the voting population.
And once again, for me, what’s the most unbelievable fiscal malfeasance is– HB 3657 was passed & signed with no legislatively required (CAA) actuarial analysis for cop or fire pension? Just Pension Impact Note stating there is no actuarial analysis? and City of Chicago analysis that nobody knows what it includes because it hasn’t been publicly released?…and no news outlets or pols seem to care.
Should be obvious to all by now that the Leftist Democrats do not care one bit about fiscal restraint and stewardship. Much higher taxes for the people already burdened with a heavy tax? Pfft! Furture insovency issues? Pfft! With Leftist Democrats in IL the credit card funded ‘goody room’ is always open, particularly for the public union bosses.
Every Republican in the state assembly voted for this. It’s adorable that you think it’s just “leftist”. lol
Agreed. Yet again, Illinois Republicans offer no meaningful alternative to the Democrats spending the state into insolvency.
There are no republicans in Illinois. Just the same team, wearing different hats.
Yet people want to blame democrats alone when both vote the same.
PPF – let’s be honest. The Republicans voted for this because they believed it would accelerate Chicago’s financial demise. A cynical position. I don’t agree with it – if the pension sweetener makes little financial sense – then vote with that principle in mind. I think we all must move beyond the accurate statement that this is what the voters wanted. Again, not because it isn’t true but rather because the focus today must be on resolving the massive financial problems. Looking at Chicago, I wonder whether they will issue more debt given the quest for high yields and an… Read more »
“I think we all must move beyond the accurate statement that this is what the voters wanted. Again, not because it isn’t true but rather because the focus today must be on resolving the massive financial problems.” I understand your point but if you don’t address the root cause of the problem you won’t be able to resolve these “massive financial problems”. The voters inability to demand fiscally responsible leaders as their representative is THE PROBLEM. People want elected leaders to fall on their sword and do the “right” thing when they won’t do that for themselves. My guess is… Read more »
Send a FOIA request to the State of Illinois asking for a record of when Illinois residents “voted” to start taxing private property. Spoiler: It never happened.
The good people of Chicago just love new spending programs and elect the politicians that will give them to them. Now they can pay more taxes for the programs they demanded – Cool!
That’s well and good till Democrats start taxing the rest of IL to prop up the reckless public union spending in Chicago. That’s were this is all going – state taxes to bailout Chicago.
“ You will own nothing and like it!” – The state of Illinois.
Your indentured servitude starts when you are either born or move into Illinois.
Have a nice day!
It seems Illinois is running out of taxpaying people to send the bill to tomorrow.
Oh well, it was the good intentions of prog polls that mattered. You public employes that fantasize about retirement in a red state should have a side hustle.
Brandon, JB, Tony, Illinois machine from city hall to Springfield—remind us who is it again that responsible for all the “systemic community disinvestment”?