-- 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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worse than I ever could have imagined
If the City has another year of negative returns such as 2018 – doesnt at least one of these funds crater much earlier, as in 2022 or so? And this is not doom and gloom thinking. The funds are so anxious for yield and or tied up with political cronies, the investments are risky.
Yes, and then the payments to pensioners becomes a direct city obligation, “pay-go.” Much more expensive than the current funding ramp.