-- 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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Remember most of the contributions to teacher accounts are paid for by pension pickups. Here in Rockford pickup is 100%. What are the pension management fees for the $665M. The fees come right off the top thus reducing total funding levels as do Tier 1 retirees prior to 2010 who could spike the sky. According to Ballotpedia in 2012 pension fees on $53B in assets were 0.55% or approx $313M returning only 0.7%. They are somewhat better now. If fees were cut in half taxpayers could save over $150M/yr. Alabama had about 1/2 the assets in 2012 with fees of… Read more »