Math is hard, but it isn't this hard. From Meep: Chicago Pension Artificial Sweeteners
How do you spell, "Negative Amortization."
You can't continue to promise gold-plated pensions, and then fail to fund them. Eventually the bills must be paid.
Meep at STUMP is an actuary. Her job is literally to evaluate this kind of thing. Not that the politicians will listen to the actuaries.
Unsurprisingly, Illinois Gov. JB Pritzker signed the Chicago police and fire Tier 2 pension sweetener, bringing it in line with the downstate plans. However, this is not much of a gift to Chicago… or those pensioners… if those promises are never fulfilled.
They are adding extra costs onto the city's pensions, but no one is doing anything to actually fund those pensions.
UPDATE: Not sure what happened to the end of this post... but there was more aside from MEEP. I just can't remember the source right now. (Note to self: Don't edit posts when you're in the throws of insomnia... things won't end well.)
Pritzker knows, most of those who were promised massive benefits, are vaccinated liberals. How many of them are going to live long enough to collect pensions?
ReplyDeleteEVERY MAJOR CITY. EVERY MINOR CITY. MOST STATES. The shell game has been going on for a VERY LONG TIME. The PROMISES to the government employee unions have ALWAYS been unsustainable and based on a never ending and ever-increasing amount of THEFT from the hard-working members of the PRODUCTIVE sector of society, regardless of their fiscal ability to pay....
ReplyDeleteA common Blue State/City problem. So much for their new math.
ReplyDeleteI suspect they are also counting on the Washington Democrats to get back into power eventually. They will then bail out the entire pension system in Illinois just like they did when Biden was in office.
ReplyDelete