-- 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 is one possible way the pensions should be calculated. With her $377,529 in contributions and actuarial expected returns of 7.5% pension would be $28,314.67 for year one plus 3% compounding= $29,164.11 and so on. This is still better than S.S. Plus you add in lifetime healthcare for many? I would love to have $377K in savings making 1% but getting 50 to 75% plus 3% compounding returns is ludicrous. To top that much of the pension money went to political pet projects or “Diverted” to something else like salary increases thus in part creating underfunding and getting meager returns.… Read more »