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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 wonder how much money state unions contribute to this dude’s “campaign fund”. I wonder, what are the “Most basic retirement security standards”? Is Martwick saying that the pension should provide ALL of what a retiree needs and that they shouldn’t have to save anything extra to augment the pension? Gee, I would suggest that 99% of SS recipients either live far below the poverty line or they saved additional money over their life to augment SS payments…or they still work. I would encourage Martwick to perhaps actually talk with current SS recipients and he will likely discover that what… Read more »
Ok, but this article offers no solution. Only vague meandering thougths.
Meandering word salads is what Crain’s is all about these days.
Annnnd…another crisis in search of a tax hike.
“Illinois is facing severe shortages of teachers, police officers, and other critical public employees, and Tier Two is a major reason why. ” Can somebody explain how local gov’t employees such as most police officers and “teachers” are affected by “Tier Two?”
Like so many public sector union friendly legislation, Martwick also heavily behind, and is one of co-signers on transportation unions–“United We Move Illinois”/ Sen Villilalam SB0005 transportation bill seeking added $700 mil yr in public transportation funding and scraping “fare box” taxing limits to be replaced by direct taxpayer funding
When you look at pension + healthcare+ drug + dental + vision, every public employee I know is recieving far in excess of the SS MAXIMUM. Who are these pensioners that have been ‘harmed’? Let’s see it. When you are on SS you have to pay into Medicare, and then continue to pay a monthly premium ($185/ mo on average this year) plus you must purchase on market your own drug, dental, and vision care. So once again, who are these people being harmed?
Great point. It’s a faulty analysis to compare Tier 2 pensions to SS unless the extravagant public sector retiree health benefits are considered.
How can you tell that what Smarmy Weasel Martwick is saying is stupid and screws over the taxpayer? His lips are moving.
Martwick lives by the following rule: Increase pension benefits whenever possible, as much as possible, based on any excuse. And notice that he, too fails to identify a single Tier 2 pensioner who has run afoul of the federal law setting minimum benefits. Martwick is a walking, talking fraud.
Martwick is the epitome of pay-to-play machine evil. In this opinion piece he makes all kinds of claims with out offering any proof. —He claims it’s a FACT ‘safe harbor’ is or will be violated: Federal law requires that any pension provided in lieu of Social Security must meet the Social Security safe harbor provision, ensuring that employees receive benefits at least as generous as Social Security. Tier Two does not meet this threshold. That is not up for debate. Actuarial and federal law experts have confirmed this —He goes on to state Illinois has a public sector worker shortage… Read more »
Yes. “violating a safe harbor” is an oxymoron, too. There are other ways to comply.