The big question is, how much risk is sitting in Illinois’ pension funds that we simply don’t know about? – Wirepoints on Cities 92.9 with Cat Petersen

Ted joined Cat Petersen to discuss the impact FTX’s collapse may have on Illinois pensions, the need for pensions funds to be more transparent about the risks they take, and the impact Amendment 1 will have on the 460 teacher union/school board contract negotiations that will happen over the next two years.

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Where's Mine ???
1 year ago

with regards to teachers unions contracts. Maybe this is a complete in outer-space question— with passage of Amendment 1, do unions have to still collectively bargain with school boards? Or with passage Amendment 1, who are unions legally obligated to bargain with? grab your ankles folks, it’s going to be a legal train wreak throughout Illinois and the lawyers associations mother load of all wet-dreams$$$$$$$!!!!

Last edited 1 year ago by Where's Mine ???
Where's Mine ???
1 year ago

With regards to pensions. Are the 100s of pensions under any legal obligation to disclose to taxpayer public the % of $ they have invested in risky Alt Assets/ Private Equity (crypto, hedge funds, clo’s, etc)? If yes this would make a great wp research piece, probably a ton of work. Nationally the Ted Seidel (who stole my pension) claims the pensions have no idea what the Alt Assets are invested in through private equity because they issue no prospectuses. And even more frightening nobody knows what the returns are because the returns are essentially whatever the private equity fund… Read more »

Eugene from a payphone
1 year ago

As a new teacher in the late 1970’s, I was elected the pension delegate for my CPS school. It was a, “give it to the newbie because nobody wants to do it” situation. I read the pension agreement and the annual report. The investment choices were listed and it was a mix of 70% bonds and 30% stocks. The thing that stood out was a provision that reduced the board of Ed’s contribution if the funds overall return exceeded 6%. The stock investments took off during the Regan years, but the fund did not benefit because of this drain on… Read more »

Poor Taxpayer
1 year ago

The non-disclosed risk is huge (as big as Pritzker). The pension funds have gone to private equity firms to get higher returns. That is high risk business, sometimes good, sometimes not so good. Always good for the private equity firms, but not always good for the pension funds. The private equity firms have destroyed many private sector businesses for the lust of profit. They can make money by crash and burn the business.

Old Joe
1 year ago

None according to Pensions Paid First. Any shortfall or impairment will be offset by a tax increase.

ProzacPlease
1 year ago
Reply to  Old Joe

Yes. Why would pension investment fund managers take on risky investments? The pensioners receive a set benefit, the performance of investments does not matter. The only possible benefit would be to the taxpayers, in the form of potentially lower tax payments. No way union pension fund managers are trying to benefit taxpayers. There is no need to consider a financial risk/reward ratio. The investments are chosen only to make political statements – ESG, divest from Israel (sorry, can’t remember the acronym), climate change, etc. They are using taxpayer money to fund their insane ideology, knowing they will just go back… Read more »

Aaron
1 year ago
Reply to  Old Joe

That’s not possible. They could tax at 100% for ten years and not pay off what has already been spent. The pensioners own you (from Florida)

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“We are not in good shape” Wirepoints’ Ted Dabrowski told ABC 20 Champaign during a segment on Illinois’ latest population losses. Illinois was one of just three states to shrink in the 2010-2020 period and has lost another 300,000 people since then. Ted says things need to change. “It’s too expensive to live here, there aren’t enough good jobs and nobody trusts the government anymore. There’s just other places to go where you can be more satisfied.”

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