-- 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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What is always diverted is the issue of early retirement obligations.
SS offers no early retirement option similar to Tier 1 or Tier 2 (10 years or 20 years work entitlement to multiples of SS 30 year entitlement).
Hurray! Some of our city’s business groups are finally taking a stand on an important issue. After their cheerleading piece in Crain’s the other day it is nice to see that maybe they understand there are some critical problems they should weigh in on.
Why should they get less? I agree with the SS base but change the 1st tier to match.
If you want tier 2 to match tier 1 you will need to increase tier 2. Can’t steal from tier 1 pensioners as it’s their money and not the taxpayers to allocate.
Huuuh?
Aren’t Tier 1 pensioners currently stealing from Tier 2 pensioners?
No. You’re misinformed. Tier 1 pensioners were offered their benefits by the state. Tier 2 are paying too much for the benefits that they will receive to the benefit of the taxpayer. Tier 1 pensioners had their contract before tier 2 was ever hired. The state or taxpayers is stealing from tier 2. If the state doesn’t change their behavior then they will be violating the safe harbor rules and pay even more. Nothing to do with tier 1.
I am not sure paying over $50,000 per year in taxes to the State and local governments is stealing. I get next to nothing for this money, and I am the one stealing? I think it is the other way around.