Ahh, . . . Chicago, . . . the "Windy City", . . . America's "Second City", . . . better known nowadays as "Chi-raq".
Chicago has a problem. No, . . . not the record rate of shootings, . . .
Chicago has a financial problem.
In 2014 the City, after negotiating the particulars with the public unions, passed a Law reforming the pension systems, the $4.6 billion Municipal Employees' Annuity & Benefit Fund and the $1.35 billion Chicago Laborers' Annuity & Benefit Fund, . . . which were on a path to bankruptcy. The usual problems, . . . promises made by an incompetent City Government to meet demands of powerful Public Employee Unions that could never be met, . . . and such.
Anyway, the Law would've increased employees' contributions and decreased retirees' annual cost-of-living-adjustments, so as to achieve 90% funding of the retirement funds by 2055.
But now it won't.
The pesky Illinois Supreme Court looked at the State Constitution and found that public retirement benefits “shall not be diminished or impaired." PERIOD. The Illinois State Constitution forbids lowering public retirement benefits ever, for any reason. [DonDiego wonders jes' how'd that provision get in there?]
So now, "the municipal employees' fund will reach insolvency by 2026, while the laborers' fund will reach insolvency by 2029". [DonDiego suggests one visit "The Big Onion" sometime before, say, 2025 to avoid potential unpleasantness.]
"What the court 'made abundantly clear is that the City of Chicago is on the hook to pay these benefits because they are constitutionally guaranteed even if the pension funds themselves go insolvent,' said Ralph Martire, executive director of the Center for Tax and Budget Accountability, a Chicago nonprofit economic research organization.
Ref: Business Insurance
Oopsi !
Hmm, . . . what to do, what to do ? DonDiego supposes a tax increase on somebody, and pretty soon too, is likely the only solution.
And somebody else has apparently figured that out: Millionaires are leaving Chicago more than any other city in the United States
"About 3,000 individuals with net assets of $1 million or more, not including their primary residence, moved from the city last year, with many citing rising racial tensions and worries about crime as factors in the decision, according to research firm New World Wealth."
Worldwide Chicago was second in "millionaires departing a City"; first place was Paris, France. [DonDiego leaves as a problem for the reader: Why Paris?"]
Hmm, . . . millionaires abandoning "The Third Coast" in record numbers ! Maybe one should plan one's visit no later than, say, 2021 just to be safe.
DonDiego opines "The Jewel of the Midwest" is heading toward hard times. It is unlikely to be alone.
DonDiego reports Springtime in Appalachia is lovely this year, and local municipal finances are doin' jes' fine.
Chicago has a problem. No, . . . not the record rate of shootings, . . .
Chicago has a financial problem.
In 2014 the City, after negotiating the particulars with the public unions, passed a Law reforming the pension systems, the $4.6 billion Municipal Employees' Annuity & Benefit Fund and the $1.35 billion Chicago Laborers' Annuity & Benefit Fund, . . . which were on a path to bankruptcy. The usual problems, . . . promises made by an incompetent City Government to meet demands of powerful Public Employee Unions that could never be met, . . . and such.
Anyway, the Law would've increased employees' contributions and decreased retirees' annual cost-of-living-adjustments, so as to achieve 90% funding of the retirement funds by 2055.
But now it won't.
The pesky Illinois Supreme Court looked at the State Constitution and found that public retirement benefits “shall not be diminished or impaired." PERIOD. The Illinois State Constitution forbids lowering public retirement benefits ever, for any reason. [DonDiego wonders jes' how'd that provision get in there?]
So now, "the municipal employees' fund will reach insolvency by 2026, while the laborers' fund will reach insolvency by 2029". [DonDiego suggests one visit "The Big Onion" sometime before, say, 2025 to avoid potential unpleasantness.]
"What the court 'made abundantly clear is that the City of Chicago is on the hook to pay these benefits because they are constitutionally guaranteed even if the pension funds themselves go insolvent,' said Ralph Martire, executive director of the Center for Tax and Budget Accountability, a Chicago nonprofit economic research organization.
Ref: Business Insurance
Oopsi !
Hmm, . . . what to do, what to do ? DonDiego supposes a tax increase on somebody, and pretty soon too, is likely the only solution.
And somebody else has apparently figured that out: Millionaires are leaving Chicago more than any other city in the United States
"About 3,000 individuals with net assets of $1 million or more, not including their primary residence, moved from the city last year, with many citing rising racial tensions and worries about crime as factors in the decision, according to research firm New World Wealth."
Worldwide Chicago was second in "millionaires departing a City"; first place was Paris, France. [DonDiego leaves as a problem for the reader: Why Paris?"]
Hmm, . . . millionaires abandoning "The Third Coast" in record numbers ! Maybe one should plan one's visit no later than, say, 2021 just to be safe.
DonDiego opines "The Jewel of the Midwest" is heading toward hard times. It is unlikely to be alone.
DonDiego reports Springtime in Appalachia is lovely this year, and local municipal finances are doin' jes' fine.
