Skip to comments.Editorial: Chicago's pension precipice: It's worse than you thought.
Posted on 04/04/2018 2:34:57 PM PDT by Beave Meister
Chicago taxpayers, prepare for another kick in the teeth. In fact, it might be a good time to grow fond of the toothless grin. Another recent court decision will put taxpayers on the hook for additional city pension debts. Yes, even more than before.
A circuit court judge in March struck down a 2014 state law that eased pressure on the pension fund of Chicago Park District retirees. The law had increased Park District employees own contributions to the fund, increased their retirement-eligible age, reduced their annual cost-of-living increases and reduced duty disability benefits. But those changes will be rolled back, due to the ruling.
That means the Park District you, taxpayers will have to come up with reimbursements for workers higher contributions, plus interest. Going forward the district will have to figure out how to stabilize the retirement fund without those cost-saving changes. Chicagos pension funds for municipal workers and laborers, teachers, police and firefighters, and now Park District employees face serious unfunded liabilities. The Civic Federation estimates the Park District fund has about 39 percent of what it needs to make future benefits payments.
The judges ruling came on top of a recent analysis of the Chicago Public Schools teacher pension fund that showed taxpayers will owe another $1 billion to shore up that retirement account, bringing that unfunded liability to $11 billion.
(Excerpt) Read more at chicagotribune.com ...
It's pretty simple math. Not enough money coming in, too much money going out.
Fire 1 of 2 city employees.
Chicago follows the Detroit solution. As the people flee and revenue falls, raise taxes. Works every time.
Since public employees unionized, home ownership has turned into indentured servitude.
The public is now there to service its servants.
I can't help but think that people have been using pension funds like they have the Social Security "lock box."
Who gets to pick up the tab after the unions and whomever else has had their way with the pensions?
The American Taxpayer.
One silver lining of America’s next recession, whenever that occurs - it will probably drive states like Illinois and Connecticut, and cities like Chicago, into bankruptcy.
Watching the leftist nanny-state cronies squirm will be fun to watch.
Fire 1 of 2 city employees.
That wouldnt work, either. The problem is Section 23 of the Illinois State Constitution. These pensions can not be touched, legally speaking.
With Hilary as President, the solution was for all the U.S. taxpayers to fund the liabilities imposed by Democrat politicians.
Unless the state’s constitution prohibits the state from declaring bankruptcy. NYS’s does. And a recent vote to call for a constitutional convention that might have changed that went down in flames thanks, you guessed it, to public employees.
“Chicago taxpayers, prepare for another kick in the teeth. In fact, it might be a good time to grow fond of the toothless grin.”
Well, that’s some nice writing!
There’s hope for our wordsmiths yet.
We went Galt before it was fashionable, so good luck getting it outta us, NY. I would love a bigger, nicer house, but it’s not gonna happen in NYS.
Don’t ask me to bail them out.
At some point, “no more money” means no more money.
We do have a completely fiat, printed, centrally-planned monetary system - so there’s always money printing.
What I can envision is government deficits of $2-3 Trillion or more (we got to $1 Trillion without hardly a peep from the markets) comprised of monetized Fed.gov bonds and Quantitative Easing. This money will be used to “bail out” insolvent pension funds and States with vague promises of reform.
You won’t be asked. You will be volunteered.
At some point taxpayers will decide it makes more sense to not be a taxpayer.
They will have 3 choices.
Refuse to pay.
Or sit on their hands and become tax consumers.
They can ask me...go ahead...make my day
You Illinois taxpayers are going to have to stop whining about not liking YOUR responsibilities to support your overlords (government employees) and your deserving welfare beneficiaries (who are entitled to your support). You are privileged to support them and you need to recognize that. You need to accept that and to be happy that you are assigned these responsibilities. (Sarc...maybe)
The vast majority of people commenting actually grasp the problem.
The turnip has no more blood to squeeze out.
You can wish for it, but there is no more money.
One idiot, though, keeps going on about legalizing weed and how it will bring in 500 million dollars in taxes.
500 million is NOTHING compared to the liabilities owed.
The shortfall in is the tens of BILLIONS range.
>>Fire 1 of 2 city employees.<<
Too late. 99/100 is vested and will get a pension. If you fire them they will get severance, unemployment and welfare (it is what they desire).
Chicago put all these people in the boat. Let it swamp.
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