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.
If it’s any consolation, some school districts are now offering a supplemental 403(b) plan (401k for nonprofits) where the district matches 50% of the employee contributions up to a maximum of 2%. This is, of course, on top of the existing pension, regardless if the teacher is Tier 1 or 2.
Sadly, I wouldn’t be surprised if the 4/2% plan compares favorably to the 6.2/6.2% SS pit my wages are currently being funneled into.