-- 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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Since Illinois is so flush with money, anything goes for a vote.
All public pensions need to be capped , and adjustments for inflation should follow increases in social security.
That’s an old old song written and answered numerous times. Say something new!
Tier 1 pensioners will not be participating in your capped pension idea.
The fairest way for all concerned is to put Tier 2 on SS, (off the SERS etc) + have up to 5% matching for IRA. Past SERS etc benefits would be still honored but stopped for the fuure
The Federal Government did something like this years ago, in the 80’s or 90’s. If I remember correctly, years of service were the determinant. Above a certain number you kept Civil Service pension. Below a certain number you were mandated into Federal Retirement System a 401 plan. If your years of service landed between the two benchmarks, you had to educate yourself on the two plans and choose the best for you. It went well and the unfunded liability had been gradually disappearing.
Thanks. Your analysis seems to support what I believe would happen. Obviously a couple of others disagreed.
Tier 2 pensions are going down. It’s “obvious”.