Meep is a nationally followed blog about pensions written by one of the few actuaries willing to speak up. Lots of references in this piece to our original articles at WirePoints.
Here is Meep’s bottom line and prediction:
“The ‘required’ contribution for Chicago pensions in 2016 will be kicked down the road by the Illinois legislature, and because of can’t fail thinking the plan will step that much closer to de facto failure. Tax rate changes one way or another won’t change anything. The asset death spiral should start within the next decade (when they have to liquidate the portfolio to cover payments to retirees, and as the pension obligation still grows, the asset pot shrinks and shrinks, even if returns are high.)”