-- 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.
SIGN UP HERE FOR OUR FREE WIREPOINTS DAILY NEWSLETTER
The State should wipe out all pension debt. Let the pensioner get a real job for the first time in their lives.
You’d impoverish generations of seniors who served as police officers, firefighters, teachers and government workers?
Most if not all of whom aren’t eligible for SS benefits?
They can all get ‘real jobs for the first time in their lives?’
What a humanitarian! I sincerely hope life is better for you than you propose consigning these retirees to.
Pensions are not guaranteed in the private sector. I know of several pensioners who have worked in a corporate all their life, contributed to their pension, only to see it wiped out because the corporation went bankrupt, and the pension protections schemes wiggle out of being able to help. Same rule applies to Government workers. Sorry. If your “corporation” or pension pot is no longer able to service, then it too should go bankrupt. The risks to both parties should be the same, but they are not. A wise man once told me to never rely on others to provide… Read more »
Pensions in the private sector are regulated. As such, private sector pensions are not allowed to skip pension contributions nor purposely make lower required (statutory) payments than the actuarial amount. There is no such mechanism for Illinois public pensions to require that pension funds receive actuarial payments only that pensioners receive their check. Can’t have it both ways.
It doesn’t matter if the pension funds are completely empty. The state is required to deliver pension checks not have a set funding level. If you don’t want the pension funds to run low, start providing actuarial payments.
Budget negotiations for the last 50 years: Politician seeking re-election: We cannot fund your wish list of progressive goodies, give more money to schools for more administrators, higher salaries, better health benefits, etc etc. We must use the revenue to pay the actuarial contributions to pensions. We can’t raise taxes, people might figure out how much you guys are costing them, and I need to get re-elected. Progressive public unions: Don’t worry about those pension contributions. We already have that locked up. Doesn’t matter if we divert the money to other stuff we want. We’ll still get ours in the… Read more »
A new year but repeating the same old lie. Unions fought the state in court to demand payments be made to their pension funds. The courts told them they had no right to a set level of funding only that they receive their checks. It’s the taxpayers that don’t want to deal with the truth so politicians give them what they want. But you go ahead and keep repeating that lie all the while pensioners keep cashing those checks. Cha-Ching.
And yet, everything I said has happened. The progressives got their wish list, there are more administrators than ever, better health benefits, higher teacher salaries, and pensioners getting paid despite poor investment performance and actuarial payments not made. What an amazing fortuitous confluence of events.
They got those items because that’s what the electorate wants. It’s not fortuitous, just good old fashioned representative democracy.
Of course, it’s always on the taxpayers, right? I forgot to mention the precipitous decline in test scores over those years. But that’s the parents’ fault no doubt. 3% Cha ching. That’s all this has ever been about.
It is the taxpayers responsibility. It’s also the students and the parents responsibility. When there is crime in Englewood, do you blame the police or the criminals in Englewood? It’s not the Police officers fault that crime is in Englewood anymore than the teachers fault that the students of those same criminals refuse to learn in school. Do you also blame the doctor when their patient is obese? Too many people passing the buck and playing the victim. Start taking ownership for your lot in life instead of blaming others.
Those parents were your students at one time. They didn’t learn anything in your classroom. Yet you gave them passing grades and a diploma, never mind that they had no chance at succeeding in the real world. It’s no wonder that their children are not learning anything either. Stop blaming others and start taking ownership for your failure to accomplish any goal beyond your own enrichment.
My lot in life is just fine, thank you.
I didn’t give anyone passing grades. Nice try. Way to make up more lies. At least you are consistent.
Parents are responsible for their own children just as a patient is responsible for their own health care. Teachers and doctors can offer assistance but ultimate responsibility lies with the individual. Neither offers miracles but they are both paid for their services. Don’t like it? Too bad.
Also, if your lot in life is fine, then you will have no problem paying more in taxes. The state needs more money to pay its bills. Pay up PP.
Good luck collecting those taxes from the former students, 70% of whom couldn’t read at grade level. Seems a promising way to fill the tax coffers with the money you need. Cha Ching!
Not worried. Plenty of taxes to be raised. Your property will serve as nice collateral.
They can have the same thing a private sector worker gets at age 67 on Social Security. Why the heck should the put people in poverty for their own benefit???
Nah. How about a 3% raise instead. January 1st baby!
Don’t blame the retirees – blame the politicians.
Most IL government retirees are not eligible for SS benefits – they were prohibited from participating because of the constitutional guarantees.
Retirees aren’t putting people in poverty; POLITICIANS are!
Agree 110%! These lazy parasites chose to outsource their retirement to Big Government and Big Unions, the 2 most incompetent, corrupt and dishonest entities in America. These bums chose to be bystanders in their own retirement instead of taking ownership and responsibility like adults. Screw them, they deserve to lose everything and have earned the poverty and misery they face
They won’t lose anything. They will continue to be paid first. Enjoy your taxes.
“These lazy parasites chose to outsource their retirement to Big Government” They did? When did they make that choice? Oh that’s right, they didn’t actually have a choice and they were forced to make contributions to a pension regardless of how they wanted their money saved. That’s why the pension protection clause exists in the first place. Republicans in 1970 thought it was morally corrupt to force people to pay into a pension system that could be taken away by future elected officials. The taxpayers chose to be bystanders while their elected representatives continue to run up the credit card.… Read more »
“Lazy parasites,” “bums,” “bystanders in their own retirement?
How much do you really know and understand about how this all came about? Apparently, not enough or you wouldn’t have written this comment.
After reading the comments on this post my position remains: don’t penalize the retirees – they didn’t negotiate those contracts. Politicians did. Retirees also didn’t take ‘pension holidays’ and underpay or not pay the actuarial-determined annual contributions. Politicians did. Next time an emergency occurs, handle it on your own – don’t dial 911 – you don’t want to rely on those lazy dispatchers, lazy cops or lazy firefighters. And the families of those lazy first responders who sent their loved ones out every day to defend and protect you – never knowing if ‘today was the day.’ Screw ’em. They… Read more »
So then we can assume providers will be forced to hike fees on those who have healthcare to pay for those that don’t pay fir their healthcare. This amounts to just another backdoor tax forced upon the people of Illinois.
I am glad that I live close to the Illinois border as I get much better care, a wider range of providers and much better hospital selection out of State.
If I may ask – which state do you border on? Just curious.
Missouri home of the Washington University Medical School, The Siteman Cancer Center and St. Louis University School of Medicine to name a few. I can buy gasoline a lot cheaper over there too adding another plus to it all and can I assume my future bills will not include an upcharge for the Illinois’ free stuff army’s stuff? (Please don’t let the politicians know or there will soon be an out of state health care tax imposed on those getting out of State health care) Regarding Siteman, to quote from Wiki, “In 2020 and 2015, Siteman received the highest rating… Read more »
Bravo! And the weather isn’t bad either.
Gee Whiz. I’ve actually paid every medical bill I ever got. What’s wrong with me? Where can I get some help?
I even got a medical credit card for some dental work a few years back. It took me a while to whittle it off. Crowns and bridge work have really gone up. I would never have believed I could blow 6K in a dentist’s office.
You’d be shocked if you knew how few bother to pay co-pays. Doctor’s offices/hospitals all have collection agencies to collect them. They’ll pay $700 a month for a Nissan Rogue for 72 months, but a $50 co-pay for an office visit? OUTRAGEOUS!
I foresee “student debt” being converted to “medical debt”…
After all, thousands of dollars of student debt can cause medical issues right…?
Don’t give them any ideas
Believe me, they’ve already thought of it.
Why should anyone pay its bills, Illinois doesn’t?
Ironically, universal healthcare would run as poorly as the County’s substandard hospital systems. She can’t barely run the county’s system, she thinks the state or federal government would run things better?
What she really means is that everyone needs YOUR health care. You have good healthcare there, eh? Hand it over, now. Now get to the back of the line, richy rich.
She should look into the ‘success’ of both Great Britain and Canada’s universal health care.
But, then again, why should an elite bother with the stupid chickens who, in spite of ongoing scandals, violence, poor quality of life, safety, and increasing costs/taxes, keep them in office?
Throw them chicken feed around election time and they’ll keep you in office.
Stupid, stupid chickens.