-- 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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But the city and the state have plenty of money it seems to throw at people who have no right to be here. If it wasn’t so pathetically comical, it would be a corrupt disgrace.
The system has to play out to its actuarial conclusion…however that looks.
Union leadership is in on this scam. If they were looking out for their members they would have demanded full funding. I would also bet union leadership retirement funds are not invested in the pension system, rank and file members have, and that the leadership’s pension fund is fully funded.
You are ignorant to the facts. The unions demanded full funding for their pension funds and the courts told them they have no such right.
“The gorilla in the room, however, is the state law that allowed Chicago to significantly underfund its pensions every single year for close to two decades. That law specified an annual pension payment that was well below the actuarial required contribution, or ARC.Basically, the ARC identifies how much should be contributed to a pension system in a given year, so it will be adequately funded to cover its liabilities over the next 30 years. Whenever a pension contribution is set at a rate below the ARC, it creates unfunded liabilities that ultimately have to be paid, along with interest that… Read more »
Mark-First it’s Carnival Barkers now it’s Talking Heads.
Most people think and many talking heads continue to blame overly generous benefits and suggest benefit cuts are needed to get the pension systems’ fiscal house in order.
And JB’s new favorite — doom grifters.
I like the word “Realist” which will never be heard from JB. This is the word we should use.
Agreed. That’s in fact the word we use for ourselves — fiscal realists.
JB can call us whatever he wants and we can return the favor back to him.
The sad fact is still we are in a mountain of unpayable debt, a recession
away form a disaster and the politicians play musical chair with our lives
without regard to what happens to the people of Illinois.
But you can bet that those politicians will be fine when the house of cards falls!
Can’t understand the down voters. I put up what Matire said in the article about talking heads. Oh Well!
Notice that down voters never engage or enlighten us with their wisdom. This is a friendly site about ideas, so why the reluctance to discuss ideas? Are they afraid of mere words and free speech?
Can you even imagine taking the time to go on to a lefty site just to downvote the fragile snowflakes? What would be the point?