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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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Kiss Illinois good bye, a goner, DOA.
Investing based upon political correctness is not generally accepted as the best way to invest funds.
That’s it!
It is time to shut this entire mess down. It’s bad enough that corrupt elected officials robbed the pensions, now the reds running them are going to finish the job bankrupting them and then flip the bill to the taxpayers.
Only complete a$$holes would be willing to support corruption of this magnitude.
Ever wonder why I support changing the state slogan to “STATE OF INTOXICATION”?
More for living in a morally superior $six-figure$ sjw sociallist paradise for the few at the expense of the many… all you got to do is send in your union dues in to papa madigan to keep it all going..and when that doesn’t work push for no strings attached HEROS ACT $fed$ bailout…no moral hazard/ no guilt…math?, debt?–thats just for tax payer chumps
If the return exists, fine. If the returns for ESG fall short, then do not look to the taxpayer for bailouts. You made your collective beds.
House money, that guaranteed by this IL Constitution, needs protections from this madness. Else, taxpayers will be on the hook for these Quixotic adventures.
Truly one of the dumbest and potentially one of the most costly ideas these pension funds are considering.There is usually a search process for hiring fund manager– and often minority owned firms make the final cut and get hired. There are good ones out there and they get their chances. But historically the hires have always been done in accordance with fiduciary legal requirements. And often– as is the case with TRS- the funds have separate fiduciary counsel whose function is to monitor specifically compliance with fiduciary legal requirements. This has been a decades long protection for the funds to… Read more »
The following sentences from the Joshua Sharf article compare the diversification language used by the Minnesota State Board of Investments (MSBI) to that of TRS Illinois. “The statute dealing with investment diversification states that ‘plan assets must be diversified to minimize the risk of substantial investment losses.’ The fiduciary responsibilities for Illinois Teachers include identical language.” http://www.trsil.org/sites/default/files/documents/BoardManual-webversion.pdf However, the link (to the June 2020 TRS board manual, not the state statute) does not contain identical language. Here is the diversification language in the above URL as it pertains to fiduciary duty: “(c) By diversifying the investments of the retirement system… Read more »