-- 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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Just once I would like to see a dollar to dollar comparison. Take a 25 year period and average salary for a Tier 1 employee, Tier 2 employee and social security benefits laid out side by side. I have never, ever seen this done so no one really knows what dollar amounts people are talking about.
Is there any talk about returns with the pension money they already have? You can still get 4% in money market funds. The stock market returns are still decent. Keeping away from risky investments with pension money. Like I said many times before. No one is looking at all the fees from top to bottom in managing the pension funds. Here are some fees for Calpers investments. https://calpers.voya.com/einfo/public/planinfo.aspx?cl=CALPERS&pl=450001PU&page=plan_informationplanhighlightsplanfees&domain=calpers.voya.com&s=pdefsj2z4qf5sr5q4ftm1jyx&d=38153a175f9b456f3377a465e905b3824ae0e869
Look what Calpers did in California to turn around low returns to higher ones.
https://www.privateequityinternational.com/recapturing-the-lost-decade/
So what are the fees Illinois is paying? Hard to find info.
“ You’ll find out what’s in it after you sign it!”- Nancy Pelosi.