-- 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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I brought up pension management fees to my local rep years ago and it basically died in one of the meetings. The data I had was from Ballotpedia 2011-2012. There were approx $57.4 Bil in assets with fees of $313 Mil per yr with an average return of 0.7% per year over 5 yrs. Now compare Alabama assets in 2012 of $28 Bil and fees of only $13 Million and return of 7.53%. Illinois fees were over 24 times higher on twice the assets or 12 times equal assets. So by my figures (over a 40 yr actuarial table) could… Read more »
Money management is the biggest scam on Earth. Add IL politics and you have a perfect souffle of criminality and graft.