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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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Did someone say “pension pickup”? Per the School District 65 teacher contract: …a salary reduction effective August 31, 1982 precisely equivalent to the eight (8) percent of gross salary previously remitted by the Board of Education to the Teacher Retirement System of the State of Illinois as each bargaining unit member’s contribution to that retirement plan. In return, the Board hereby agrees to “pick-up” and pay to the Teacher Retirement System of Illinois, in lieu of contributions by the employees, the eight (8) percent of gross salary which has been designated formerly as the employee contribution to that plan So… Read more »