-- 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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The state forbids any action to impair or diminish pension benefits which is correct. I have not heard anything about someone/anyone not getting their state pension or any reduced benefits. What has concerned me is how much has been taken off the top in fees and costs associated for decades now. Who watches the people in charge of billions of dollars in assets. Billions and billions in fees/costs have diminished the funds assets thus reducing the compounding effect over time but have not reduced anyone’s pension. Seems like the pension itself is guaranteed but not the pension assets because the… Read more »