Vegas Free-for-All - More pension trouble?

jatki

Aug 6, 2013
12:07pm

I fear there's going to be many unhappy people and broken promises in the future.

CHICAGO — Corporations are moving in, and housing prices are looking better across the region. There has been a slight uptick in population. But a crushing problem lurks beneath the signs of economic recovery in Chicago: one of the most poorly funded pension systems among the nation's major cities. Its plight threatens to upend the finances of President Obama's hometown, now run by his former chief of staff, Rahm Emanuel.

The pension fund for retired Chicago teachers stands at risk of collapse. The city's four funds for other retired city workers are short by $19.5 billion. At least one of the funds is in peril of running out of money in less than a decade. And starting in 2015, the city will be required by the state to make far larger contributions to the funds, which could leave it hundreds of millions of dollars in the red — as much as it would cost to pay 4,300 police officers to patrol the streets for a year...

https://www.cnbc.com/id/100941585?__source=xfinity|mod&par=xfinity

malibber2

Aug 6, 2013
12:59pm

Block User

But I am sure there is plenty of money to finance new sports stadiums every 15-20 years in these cities. It always seems to me to boil down to a case of priorities. Are you going to take care of people or corporations? I know which side I am rooting for. It used to be the case that public sector pay was lower than average and people did the work for the promise of future benefits. Seems kind of a dickish move to me file bk to dump the pension and medical insurance obligations.

jatki

Aug 6, 2013
1:35pm

Block User

I agree, building a new stadium while Rome burns(so to speak) doesn't sound quite right. I don't really expect it to to be built now, I'm sure it will but down the road a bit. I wasn't kidding when I said I fear there's gonna be a lot people hurting in the future.If you read a little further down in the article, I thought it interesting the little town in W Va is paying their pensioners out of the general fund(ie didn't put money in the pension fund=unfunded pension).Here's a pretty good source and a an interactive map of bankruptcies since 2010, 23 in all.
https://www.governing.com/gov-data/municipal-cities-counties-bankruptcies-and-defaults.html

I wonder how many other towns and cities are going to go the bankrupt route. I know one thing I am absolutely certain about, there should be no federal assistance in the matter, it's a muncipal issue period. The feds already bailed the banks and auto indusry, that's enough. Hopefully something will get worked that is that's amicable to everyone.We'll see what happens.

J

esteskefauver

Aug 6, 2013
1:38pm

Block User

Quote

Originally posted by: jatki99
I fear there's going to be many unhappy people and broken promises in the future.

CHICAGO — Corporations are moving in, and housing prices are looking better across the region. There has been a slight uptick in population. But a crushing problem lurks beneath the signs of economic recovery in Chicago: one of the most poorly funded pension systems among the nation's major cities. Its plight threatens to upend the finances of President Obama's hometown, now run by his former chief of staff, Rahm Emanuel.

The pension fund for retired Chicago teachers stands at risk of collapse. The city's four funds for other retired city workers are short by $19.5 billion. At least one of the funds is in peril of running out of money in less than a decade. And starting in 2015, the city will be required by the state to make far larger contributions to the funds, which could leave it hundreds of millions of dollars in the red — as much as it would cost to pay 4,300 police officers to patrol the streets for a year...

https://www.cnbc.com/id/100941585?__source=xfinity|mod&par=xfinity

When the liberal rags like the NY Times are sounding the alarm about the pension crisis in big cities you know it's bad. But, forkush draws the analogy of government pensions to newborn babies so maybe we are all just paranoid.

jatki

Aug 6, 2013
1:44pm

Block User

I don't think it's a lib. vs con. problem, it's just a big F'n problem and folks are gonna have to figure it out instead of kicking the can down the road. Arguing who done what is pretty pointless now, talking about solutions would be time better spent.

J

hoops2

Aug 6, 2013
11:26pm

Block User

Mayor Bloomberg said yesterday that since has been mayor; pension and medical costs have risen 400%. In time these 2 items will consume 100% of the tax revenue.

As an aside 95% of city employees make no contributions to their health care and only have to contribute 3% of their salary for their first 10 years for their pensions

Tutontow

Aug 7, 2013
4:43am

Block User

Another case where decades and decades of crooked and inept politicians screw things up and the workers and the taxpayers suffer. I draw a pension from the state of Florida and I watch this stuff closely. Florida's pension is healthy and actually grew by 9.7 billion dollars last year even after paying all of the retirees.

jatki

Aug 7, 2013
11:10am

Block User

Quote

Originally posted by: Tutontow
Another case where decades and decades of crooked and inept politicians screw things up and the workers and the taxpayers suffer. I draw a pension from the state of Florida and I watch this stuff closely. Florida's pension is healthy and actually grew by 9.7 billion dollars last year even after paying all of the retirees.

That is great news,makes me wonder how many pensions are funded(or being funded properly ) vs pensions that are in trouble.

forkushV

Aug 7, 2013
11:33am

Block User

Some states and municipalities actually reduced their contribution to pensions in the 2000's because their investments in real estate backed bonds were sure to go up and up and up forever. S&P and Moody's guaranteed it!

And now it's the worker's fault.

jhowell

Aug 7, 2013
12:21pm

Block User

Wow - just change the job title and look at the top paid Teachers and Administrators for Illinois.

Database: Search for Illinois teacher and administrator salaries

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