-- 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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Pension Plan – Discount Rate – Net Pension Liability (Unfunded Liability) – Percent Funded.
IMRF & IMRF SLEP, Oak Park allocation – 7.49% – 8,502,275 – 92%.
Oak Park Downstate Police – 6.75% – $82,300,309 – 50%.
Oak Park Downstate Fire – 6.75% – $75,026,514 – 37%.
Total – $165,829,198.
Only one employee is in IMRF SLEP.
IMRF is a multi-employer pension plan.
Downstate Police and Downstate Fire are single employer pension plans.
source: Oak Park CAFR, FY ending 12/31/2015.