Skip to comments.What happens if Chicago pension funds run out of money?
Posted on 12/05/2010 4:08:04 PM PST by george76
Illinois Constitution raises questions about who's on the hook if they become insolvent.
With some city pension funding levels dropping below 40 percent, a question arises that seemed unthinkable just a decade ago: If a pension fund runs out of money, who pays for the retirement security promised to city workers?
The answer is complicated by changes to the Illinois Constitution in 1970 that made retirement benefits for public employees a contractual guarantee that could not be diminished.
Union leaders say pension benefits are guaranteed not only for retired workers but for those still working, and that if a fund went under, the city would be required to find a way to make the fund whole by levying more taxes, borrowing, cutting services or all of the above.
(Excerpt) Read more at chicagotribune.com ...
Well the federal government will bail them out, since they have been bailing out foreign banks and all kinds of corporations.
Same that occurs with Other DNC/ SEIU enclaves.
It gets covered by the other cities and states.
The DNC and it’s constituents know full well they can increase debt into the the trillions here in CA.
We have 6 Billion of the other states monies know.
Chicago knows this too.
Withdraw police protection to the Loop and Gold Coast, ditto garbage collection, close the public schools.
Hey, I am a member of Cal-PERS (left the state 11 years ago). I just ask to get my money back with a reasonable ROI (6% is what they publish).
I am more than happy to walk away from it so long as I am not robbed (like with Social Security which is robbery — no one under 55 will see a dime of it).
The problem though, is that paying these funds might need to be done with near worthless money in an atmosphere where the only assets of value are made of brass and lead.
Hmmm.....is Illinois able to levy a tax on pensions? They may be obliged to pay, but they could turn around and take the money back.
Illinois is now or will be taxing SS benefits. So, with more taxing to pay pensions they can tax so they can get tax money to pay pensions they can tax. Or something like that.
Does the union contribute to Obama’s brand of socialism? There’s your answer.
I am so sick of the corruption with the unions and the Fed and State Governments.
This has got to stop. There is not enough money to cover the amount spent by these corrupt governments. We are falling into the same abyss that is crippling other South American and European nations. WHEN WILL THIS END?
Barry can bail out Chicago with his “stash of money”...
More folks will move to Colorado and finish screwing up that state too?
Illinois has a flat 3% income tax. Pensions and other retirement accounts aren't taxed.
It will be Detroit?
And all the little Illinois boys and Illinois girls must get $56,000 worth of Christmas presents. (even if they're Muzzies, or have only arrived recently on these shores)
Lay a windfall tax on government union pensions. Do the same on their wages. Collect it via withholding at the time of the checks. Set the rates high enough to make the make the numbers work. Tell the voters, honestly, you’re just doing what the union said - taxing the rich more!
I’m fed up with unions. I think they all should be disbanded. My brother is an retired GM employee & we both agree that the management is nothing but crooks, liars & thieves. The union has outlived its usefulness & not needed anymore. They take the union dues not to help the employees paying the dues but themselves. I feel sorry for the workers but their outrageous pay is coming home to roost.
The fed will create some electronic money and shuttle it to chicago under the table. Nothing will happen, life will go on...for now.
No legislative body is bound by the acts of a previous legislative body...PERIOD. Just ABOLISH All retirement benefits for ANY PERSON that is a member of a UNION and has been a beneficiary of Collective Bargaining.
When Unions started They Were Responsible for Pensions, they can be again.
I start to laugh uncontrollably as I salute the 2nd law of thermo-dynamics?
Just steal private retirement savings.
I’ll tell you who they are going to TRY to put on the hook for it... I’m seriously contemplating — if the Fed’s do start bailing out states like California, New York, Illinois, and Cities like Chicago — just refusing to pay income taxes any longer. Tax revolt. Of course, my wife would probably leave me. I would probably go to prison, if the IRS didn’t find a way to raid my house and get rid of me outright, so they could just confiscate all my stuff....
Oh, did I type that out loud? How long before the “Tea Parties” actually DO start throwing LITERAL tea in the bay, or REFUSING to pay the fees and taxes, or buy the stupid government “stamps?” When will the insults and injuries be ENOUGH!?!
You're a funny guy!
yes but when they were responsible for pensions they let the mob in!
My cousin is/was President of an Illinois teachers union. The state raided/spent it.
Seems Illinois/Chicago don't even give out IOUs. They just pay some bills, of their choosing, as revenue allows.
Yes, he blames Blotto and the crook legislators.
Oddly, he does not blame his pension fund managers. Evidently, they have no authority over what the legislature does with the funds. Taxes come in, the legislature doesn't put it in the pension funds.
Are instances like this ever discussed with the citizens of that state? Like, do the people in the state have a forum to discuss this abuse of power? This is robbery and/or misappropriation of funds. Are people so stupid that they sit back and allow this to happen? Crimeny. . .
All Chicago pension money can be paid in Zimbabwe dollars.
Before or after the celebratory stogie?
Fat Tony kills Mayor Quimby?
I *am* society's only protection...
And so are you.
Thursday’s Glen Beck show covered this. California, Illinois, New Jersey, and New York are all in this situation, and will all be bailed out so long as they end up insolvent while King Hussein is in power.
...which will mean further devaluation of the dollar.
Your analysis may be true for federal obligations, but certainly not for those of the states or local governments.
How will BHO bail them out?