-- 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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Anyone know what the pension amounts are? For how many years?
Many are worth over $3 million present value.
Maybe you should consider reading countless Wirepoints articles on that before waking everybody’s time on such a question. There’s a search tool in the upper left of the home page.
Public pensions have never been fully funded because the increase in taxes would cause a revolt among taxpayers. The city could also save a lot of money and gaming of the system by public employees by making the max pension amount 75% of their base salary, exclusive of overtime pay. Many public employees, with the support of their union, stack on overtime the year before they retire to drastically bump up their pensions, sometimes even doubling their pension. The federal government caught on to this back in the 1980’s and bases retirement pay on the base pay rate for almost… Read more »
TIME TO FILE FOR BANKRUPTCY