-- 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.
SIGN UP HERE FOR OUR FREE WIREPOINTS DAILY NEWSLETTER
They have as much chance of success as sticking your elbow in your ear!
Will Tier 2 members be willing to contribute an extra 2% of their salary towards pensions in exchange for being able to retire two years earlier? Many are already 5-10 years in, so an extra 2% for the remainder of their service might be worth it. We’ll see. The third tier of benefits has higher employee contributions of 11% vs. 9% for Tier 1 and 2. However, members of the third tier are able to retire two years earlier with either full benefits (age 65) or reduced benefits (age 60). Members of Tier 2, who were hired between January 1,… Read more »