Politicians helped bring Chicago's public pension funds to the brink of insolvency

Chicago Tribune ^ | 11.17.10 | Jason Grotto

[Thebaddog]

Chicago's public pension funds are teetering on the brink of insolvency in large part because city officials and union leaders repeatedly exploited the system, draining away billions of dollars in the last decade to serve short-term political needs, a Tribune investigation has found.

Time and again, the funds have been used as a bargaining chip or a piggy bank. Politicians trimmed budgets by offering early retirement incentives and greased union contract deals with increases in benefits. "Pension holidays" allowed the city to avoid paying into workers' retirement funds.

As a result, the funds soon may not be able to keep promises that are codified in the state constitution, threatening the retirements of tens of thousands of rank-and-file union members and leaving taxpayers on the hook for billions of dollars owed to teachers, police officers, firefighters and others.

A Tribune review of legislative changes pushed by city officials and union leaders during the last 15 years found that laws governing city pension

[Thebaddog]

You really can't tell the difference from a working City employee and a retired City employee. We just keep on paying and paying and paying.

[tcrlaf]

Government Bankruptcy may be the ONLY solution now available.

The bill for 40 years of Democrat vote-buying is now due-in-full, and there is no money to cover the promises made by politicians years ago.

[Eric in the Ozarks]

Stand by for a bailout request.
Barky will sign off in a heartbeat.

[Daisyjane69]

Thanks for posting this.

I forwarded it to my sweetie, who lives on the northside and teaches at a private Catholic school on the southside. He has to work a second, tutoring job, just to get by.

I hear Quinn is going to raise property taxes, eh?

I’ve been telling my sweetie for a couple of years that he’d better get out of Dodge before he finds himself on the hook for all this crap. Hopefully this article will wake him up.

Thanks again.

[True North]

Just wondering.....

If a city is considered a corporation and it goes bankrupt, would it be able to default on and renegotiate its contracts and obligations with all the persons and entities with whom it has financial liabilities such as pension plans and employee and retiree benefits?

[Hoodat]

Who is John Galt?

[Condor51]

This is what happens when Chicago (Daley's hacks) has control of the IL General Assembly i.e.: Mike Madigan (IL House) and Emil Jones (IL Senate). State pensions laws have been rewritten so many times in the past ten years it's a friggen joke. But it's a joke that isn't funny.

Somehow, and I don't know how, state law, or our IL Constitution has to be amended where that cesspool on the lake doesn't have control over the entire state. In their entire lives those Chicago asshat pols haven't been 10 miles south of Joliet₍₁₎₍₂₎ and (cough) *think* all of IL is like Chicago.

(1) Except when they have to go to Springfield and then they keep their eyes closed for the entire drive.
(2) Or to visit relatives doing time in Statesville Prison.
(Joliet Prison of 'Blues Brothers' fame was shut down a 'few' years back)

[Cletus.D.Yokel]

Stateville is north and east of Joliet, even.

[DUMBGRUNT]

"Their birthright has been sold out from under them because they'll be paying for services and benefits that were rendered before they grew up while theirs are cut to save money."

How is this different from obamacare?

[Condor51]

Stateville is north and east of Joliet, even.

Yes, I know. Its on the North side of Joliet, on IL Rt 53 (and IL Rt 7).
[Its address is 'Stateville Correctional Center, Joliet IL']

But I figured that after visiting their relatives, they'd be hungry and go out to eat. Which could take them South of Joliet proper for a good 'Rib Joint' ;-)