-- 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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I gave this info of pension management fees up with my local Illinois state rep many years ago($323 mil in fees for TRS and return of 7/10 tenths of 1% on then $54 bill in assets) and he brought it to committee where the other side did not know how to answer of where the money is going. It went nowhere from there. In California fees were over $1billion and will be halved in a few years. Ultimately the taxpayers pay for these fees and have absolutely nothing to say about it.