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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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I would like to see how the laws made are for all the people and groups.
“(The judge) shut the governor down pretty hard in the opinion,” Lesperance said. “It is clear in the constitution, the laws of Illinois are for all people and all groups, not one group of people or one specific geographic area.” Does the law “Shall not impair or diminish” cover all retirement programs like 401K/IRA’s or just a small select group?
Yes 401k/IRA’s are covered by the constitution. Prior to the pension clause being added to the constitution, some jurisdictions deemed pensions a gratuity that could be altered at the whim or needs of the government. This meant they didn’t hold any contractual rights and the amendment was added to clarify this point. Your private retirement accounts are protected as well. Your employer can’t go back after it promised you a 6 percent match and retroactively take that money it deposited into your 401k back. You have been protected all along by the contracts clause and no additional amendment is needed… Read more »