No Shit Ed
- Mayor Daley was accused Monday of ignoring a “ticking time bomb” for Chicago taxpayers: four city employee pension funds that will run out of money by 2030.
During opening day of City Council hearings on Daley’s final city budget, Ald. Edward M. Burke (14th), chairman of the Council’s Finance Committee, homed in on the pension crisis that will force Chicago taxpayers and city workers to dig deeper..
Daley has vowed to push legislation in the Illinois General Assembly’s fall veto session that would extend a two-tiered pension system to newly-hired police officers and firefighters.
But, Burke said that’s nowhere near enough to diffuse [sic], what he called a “ticking time bomb.”
Nice to see Burke catching up. Too bad he'll solve exactly nothing.
Labels: pension
posted by SCC at 12:03 AM
71 Comments:
Yes, the pension is calling a meeting for all those in the fund on 21 October at the academy. The fund is now selling off assets to make the payouts and will run our of money in 9 years. And, they estimate, that it is impossible for the city to raise the money to keep this from happening. I never thought I would see this day come, but it sure looks like it is coming, at the very least, a severe cut in pensions for everyone, to include those already retired. And, if you do not think that this is possible because of the state constitution, I would not be so smug. With economy in the tank and unemployment so high, the city is not going to raise property taxes to any extent to fully fund the pensions. In fact, they cannot raise it high enough to make a difference.
Burke has no business being a politician. He's a back stabbing lier and knew all along about the pension problem. He created and backed the actions that caused the problems! Burke is Daley!
What is with this "diffuse a bomb" stuff? I swear I've seen that about five times in the past month.
dif·fuse/diˈfyo͞os/
Adjective: Spread out over a large area; not concentrated.
Verb: Spread or cause to spread over a wide area or among a large number of people.
Bomb squads try to defuse bombs.
Never thought that there were so many California Highway Patrolmen making over $200K
CHP 200K+
http://www.sacbee.com/statepay/?name=&agency=CALIFORNIA+HIGHWAY+PATROL&salarylevel=200000
The First 10 City Pensions That Will Run Out Of Money
We are in worse shape than Detroit!
This report says Chicago is tapped out by 2019!
Read more: http://www.businessinsider.com/city-pensions-run-out-of-money-2010-10#2-chicago-9#ixzz12nUkUHWE
The answer would be a pension cap. The fund should impose a temporary cap on all payouts at the level of 20 years patrolmans formula, until it regains a mininum level of solvency.
No city adminstration will solve this problem for us.
All you go-getters happy now with all of your "gee is it pensionable?" bullshit.
How come no one seeks to match up any of the contributors of $6 million in Ed Burke's campaign chest with city vendors and contractors? Should not be too hard.
Why does a city alderman for Christ sake who constantly runs UNOPPOSED need $6 million in campaign funds?
Is that where the graft goes? Aren't those donors supposed to be public knowledge? Doesn't any reporter know how to match up campaign donors with city vendors and contractors?
retired guy said...
Yes, the pension is calling a meeting for all those in the fund on 21 October at the academy. The fund is now selling off assets to make the payouts and will run our of money in 9 years. And, they estimate, that it is impossible for the city to raise the money to keep this from happening. I never thought I would see this day come, but it sure looks like it is coming, at the very least, a severe cut in pensions for everyone, to include those already retired. And, if you do not think that this is possible because of the state constitution, I would not be so smug. With economy in the tank and unemployment so high, the city is not going to raise property taxes to any extent to fully fund the pensions. In fact, they cannot raise it high enough to make a difference.
10/19/2010 12:08:00 AM
That is NOT the Chicago police pension fund that is selling off assets, that is one of the state funds, NOT OURS.
Don't get people more worried with wrong information.
We have around $3.3 billion in the CPD pension fund and we are NOT selling off assets to pay annuitants.
Rumor is 50% max no matter age or time on.
Come election day I will still see sell out cops pimping for the dems. All you libs bitched about Enron the city makes them look like saints.
The only hope we have is for the US government to get its financial house back in order so that the business sector will begin to rebound in a meaningful way. unfortunately, we're going to get raped before any rebound happens.
All of you liberal voters just keep sending these same thieves back to Chicago, Springfield and DC and then when the toilet finally flushes, you can say what you always say, "They're all crooks anyway, so it doesn't matter who we vote for". You just can't keep voting for people whose only concern is for those that WON'T help carry the water and are only worried about how much of it they can drink for free.
401(k) you will be 70 before you can retire. I hope in your 60's your able to stay off the bottom 10% in activity.
I hope that extra garbage can your alderman got ya was worth it. Look keep voting in the Irish they brought their own country to the brink of destruction and did the same here. "OH DANNY BOY"
and no mention that the city hasn't been paying it's share for over 20 plus yrs now,i think some of us are screwed!
I would write additional citations if the City would commit to sending the funds raised to our pension fund!
When I mentioned the Pension problems while contract negotiations were going there was no response to it except for a few making snide remarks. The pension problems should have been at the forefront of contract negotiations for the last 4 contracts.
I will once again give you my estimates of when the fund will go belly up.
earliest 2018
latest 2022
old retired guy
The fund lost millions ( maybe 100) in the cds, cmo, cmbs debacle. Their advisors are all politically connected. I could go on and on.
But carry on and worry about some chump change retro check.
Maybe if Daley and his crime family had paid it's contributions all along like the law demands instead of;
building fkn parks on every block, building planters blocking every fkn street from border to border, MILLIONS wasted on his Olympic pipe-dream, the Millions wasted by his merry band of thieves stealing from our fund, only to make SHIT investments that lost everything, our fkn incompetent FOP absolving the city for a 20 MILLION DOLLAR payment to the pension fund, ETC, ETC, ETC!!!! Our pension fund would be doing fine! But these thieving muther fkrs would rather blame the poor, overpaid greedy policemen for the fund going broke. FUCK YOU ALL!
Beside being underfunded by the city,the pension funds have long been used by the city as a patronage reward, namely the gold braid pensions. You can be a sergeant or a lieutenant and walk away with a 100 grand plus pension. But it is not easy to eliminate this perk. There are many "exempt" positions in the police department that are entitled to enhanced pensions. Namely, detectives, evidence techs, crime lab personnel ( some get captains pensions), captains, and if you take into account the merit system of promotions, 1/3 of sergeants and lieutenants. Well over half of the supervisors are what you can classify as exempt promotions. The pension board already gives gold braid credit for time spent as a captain or when you are an acting commander for furloughs. Things are going to be tough in the next few years trying to straighten out this mess and save the pension funds.
Never thought that there were so many California Highway Patrolmen making over $200K
CHP 200K+
http://www.sacbee.com/statepay/?name=&agency=CALIFORNIA+HIGHWAY+PATROL&salarylevel=200000
-------------------
HOLY SHIT! ? ! ?
What up with that???
No wonder that state is bankrupt.
Never thought that there were so many California Highway Patrolmen making over $200K
----------
The CHPs making over $200,000 probably retired and cashed in on their Comp Time that is why is is so much.
If Chicago was smart they would instill an order so that new hires would only be able to carry 500 hours of comp time on the books. This would have to a change in the contracts however.
When Sgt. D.K. from the airport retires and sells his over 15,000 Compt time hours that he has it will propably bankrupt the City of Chicago.
. . . by the way.. KILL THE GOLD BRAID PENSIONS ! ! !
"Too bad he'll solve exactly nothing."
Yeah all the while making sure nothing happens to his pension.
They have to issue a bond. But they also have to change the funding source from simply just property taxes. That's archaic.
Active employees should expect an eventual increase from 9% of their salary to 11%. The Fire Union has already challenged the city to do their part and demonstrated that firemen are willing to increase contributions, but the City is not willing to up theirs.
Hey Ed maybe if you and your friends did not steal so much money,the daley family vaneckos,patrick daley and the rest, we would have enough thieves! Hey ed you have how many guys making D-3 pensionable pay acting as your personal valets? How many gold star pensions? How many of your friends ed have you shifted around so they could get huge undeserved pensions how many ed?? Talk about a hypocrite! Hey ed where were you when all this money was stolen? Besides taking what have you done? Hope the feds are revving up the big bus and get all of you criminals,daley you,madigan and the 49 other sheep!!
Anonymous Anonymous said...
Burke has no business being a politician. He's a back stabbing lier and knew all along about the pension problem. He created and backed the actions that caused the problems! Burke is Daley!
10/19/2010 12:35:00 AM
Agree 110%!!!!
I'm retired now.
When I was hired, the city made monthly payment for me into the pension fund, just like I did and the fund got to invest the money.
Somewhere along the line, the city stopped making the monthly payment, thus depriving the fund of the interest they would have gotten. Also, since the city took control of the fund, padded it with politial types and diverted money from the fund to their buddys, the city should be help liable for the losses too.
The last city appointed person wh complained that the mayor was doing the wrong thing was set up and sent to jail for telling the facts!
it's very difficult to backfund a pension. that is why it is best to keep up the payments and not declare a PENSION FUNDING HOLIDAY.
the mayor and city council did this to us and are fully to blame.
Revenue for pensions? Do you think that if the city were to say they will contribute 50% of all revenue from parkers, movers and impounds maybe the activity would at least double? None of us want to feed this corrupt city money unless it in turn will secure our benefits.
how can slick eddie solve a problem he participated in creating?
Ok, so enough of the ticket slow down, start writing them!!! The more you write the more money the City gets.
There should be a Federal Criminal Investigation.
If the Daley Crime Family conspires to cheat us and enrich themselves:
A. by not making the required pension payments which loses us principal and interest,
B. yet at the same time diverts city funds into expensive but not required city projects (flower boxes, street scaping, Olympics)
C. the proprietors of those projects are required to make contributions which enrich the politicians who make those decisions
Then that is criminal conspiracy and needs to be dealt with severely.
To the next Mayor of Chicago:
Forensic Audit of the City's Books!
can we get obama to bail out our pension fund just like he did to the auto industry and financial markets---- sort of like an "FDIC" for municipal employees pension funds---- we promise we will pay it all back.....
better buy a retirement place in Alaska or out west and learn to live off of the land because 20 years and 25% is coming.
The Mayor has over 1.5 million in campaign funds he is going to keep when he leaves. He should donate it to our pension or be made to.
Soilent Green is coming. Cops were not paid enuff so they just took what they needed. That's a fair trade off. I would not piss off so many folks with guns by taking away their pensions.
I have a question for someone from the pension fund. Today Pimco ( worlds largest bond fund) and the New York Fed ( thats right the Fed) want a putback of approximately 47 billion ( Billion) dollars from Bank of America concerning some MBS ( mortgage back securities) which were bought by Pimco and the NY fed.
I would like to know if any Pension board members have contacted our ace financial advisors and if anything like this could be done for our fund.
old retired guy
Get rid of Gold braided pensions. Should only be able to collect at lt. pay, since that, by in large, is the only semi-legit. earned pay!
Mess with the pensions of hard working people and men with guns are going to get pissed!
Not to worry... as part of his "separation package" to the citizens of Chicago, shortshanks is going to sell the lakefront and all the water for ten miles out to Great America. The deal, spoken of ONLY in a certain stairwell, will net the city a total of 3 Billion $$$. This, of course, is in addition to the 145 Billion the Daley "crew" (Crew? WTF? is this "The Patch" we're talking about?)...
Ah well, not much difference, I suppose other than the boys in "The Patch" are a bit classier.
How did we ever get in this position if both sides have contributed their required share in good faith?
Oh that's right only we have contributed the required ammount. The city not so much. That's a breach of fiduciary duty and we must hold
these politicians accountable. Do you think they'd let their pension funds become this grossly underfunded? Hell no they wouldn't.
Daleys nephew swiped almost 70 million of our funds. How about we go after that prick and his cohorts for that money? Or better yet we could just take 70 million out of the mayors and alderthieves pension funds. I'm sure they wouldn't mind.
This pension fiasco turns my stomach. While I appreciate Burke bringing this pending doom to light I know damn well he isn't just now finding out about this. The mayor and alderthieves have been asleep at the wheel on this issue for far too long now. This situation must be corrected no matter what the cost. We deserve nothing less.
The LA Mayor's Pension Solution:
Global Pensions
Raquel Pichardo-Allison
US – Los Angeles Mayor Antonio Villaraigosa has unveiled proposals that will have newly hired police and firefighters working longer for better pensions and paying for post-retirement health care for the first time.
Villaraigosa said the pension changes will save the city $173m for every 1,000 new hires.
Under the new plan, employees can continue to retire after 20 years of service, but will receive only 40% of their salary, instead of 50%. Subsequent increases will also be staggered at a slower rate.
The employee pension contribution, which was either 8% or 9%, will be 9%.
"The plan is designed to balance cost savings without detracting from recruitment and retention efforts. It requires newly hired police officers and firefighters to work longer in order to qualify for enhanced retirement benefits," said a release from the Mayor's office.
Meanwhile, if the plan is approved, the final compensation will be calculated using the last two years of salary, instead of the final year.
The employee contribution to health care coverage, which some US schemes wrap into the overall pension payment, will increase from zero to 2%.
"I believe strongly that we have a special obligation to our sworn officers and firefighters to provide reasonable healthcare while they serve the City and in retirement. But we simply cannot continue to provide that benefit for free. I'm not doing this because I want to. I am doing it because I have to," said Villaraigosa on his web-log yesterday....
I can't even imagine this mess! They have a 650 million dollar deficit and plug it by selling off airports, meters, parking garages and everything they can think of. They leave another 650 million dollar mess for the next 40 years meaning that the actual deficit is about 1.3 billion annually. After helping all of their friends get promoted, get contracts, reduce friends property taxes, we are supposed to be grateful that the mayor leaves with a balanced budget. Ed Burke has been on the finance committee and is speaking up on his way out the door with his pockets lined and his wife on the Supreme Court to protect him. Daley leaves and will say well the shit didn't blow up on his watch. Together they made the bomb, set the timer and are getting out just in time before shit hits the fan. They both should be tarred asnd feathered before they get to run out of town. Hopefully, the security detail they have keeps tabs on them both. They are both Frauds.
Old Retired Guy Here:
Question, Do I Remember, Correctly ?
The FOP per Mark wrote off a 23million dollar pension obligation, that the city owned the pension fund.
Does Anyone else remember this ?
If so, can someone explain it to me ?
What or Who gives the FOP the authority to do such a thing ?
PS: Have A Nice Day ????
still has a cpd star and a pension and he was a cop for 5 yrs na=maybe before his daddy died
And His detail costs how much?????? WTF FLOP
I remember when the FOP wrote off the city's pension obligation. What a great move. As good a move as worrying about a 5000 retro check versus a million dollar pension.
old retired guy
THE PONZI SCEME IS OVER!!! A HOUSE OF CARDS AND YOU BELIEVED IN IT!! LOL NO PRIZE WHEN YOU RETIRE BUT YOUR TAXES WILL PAY FOR THE GOLD STAR PENSIONS!! JUST THINK OF YOUR KIDS and you vote DEM and keep it going HOW FUKIN STUPID!!!!!! And there is anger in France Wait till it hits here in IL when we go belly up and all yes all bets are off
Burn your own house down because your stuck
Anonymous Anonymous said...
Old Retired Guy Here:
Question, Do I Remember, Correctly ?
The FOP per Mark wrote off a 23million dollar pension obligation, that the city owned the pension fund.
Does Anyone else remember this ?
If so, can someone explain it to me ?
What or Who gives the FOP the authority to do such a thing ?
PS: Have A Nice Day ????
10/19/2010 07:02:00 PM
If I recall correctly, it was $40 million by Nolan.
http://en.wikipedia.org/wiki/File:Ponzi.jpg
keep voting these guys in you sheep
Better retire now no money after 2013
how the fuck does someone get 6 million to just sit there--everyone of the fucking aldermen should turn over their war chests and put it in the pension fund they forked over to the OLYMPIC BID.
Send the flower boxes back for a refund.
Saw 6 man crew working on Madison Avenue this summer.
Great, eh?
So...
20+ years of chronic underfunding of and stealing from our pension fund has gotten us to this point.
We came on this job to serve in good faith in that we would have a decent pension when we retired.
Now shortshanks, eddie the oily and these rest of these fools are running away from their obligation to fully fund the pension like a bunch of nine year olds chasing each other around the playlot with fresh dog shit on a stick.
Bet you a fat man THEIR PENSIONS aren't fucked up!
Nor do they have a plethora of newly invented (within the last 10 years) gold star ranks to reward the CPD clout baby bosses with pensions in excess of their career service pay at Lieutenant and Captain in a ploy to drain the fund just that much faster so Daley Inc. can fulfill their wet dream of two tier pension for The Police.
These fools are playing with fire fucking with the money of A LOT OF PEOPLE WITH ACCESS TO FIREARMS!
That's a lot of fucking nerve!
"Fuck you and your sacrifice of 20 to 40+ years of family time, blood, sweat and tears... No pension for you cuz we stole your money!"
Perhaps the put upon Policemen should seek redress by their own hands against these thieving pricks.
Stout manila hemp rope.
2 x 4's and 4 x 4's.
Nails.
Or for the sake of brevity...
Stout manila hemp rope.
A high and stout tree limb somewhere in a forest preserve or an old abandoned rail trestle.
Old Retired Guy Here:
Question, Do I Remember, Correctly ?
The FOP per Mark wrote off a 23million dollar pension obligation, that the city owned the pension fund.
Does Anyone else remember this ?
If so, can someone explain it to me ?
What or Who gives the FOP the authority to do such a thing ?
PS: Have A Nice Day ????
That was to improve our pensions (29 and a day).Didn't Mike Shields put out a flyer that he was going to improve the funding at the pension board. It isn't all his fault, there are eight or nine trustees on that board. But shouldn't we hold trustees running for these positions accountable for their promises.
Really? You do not believe that OUR pension fund is selling assets? Then read the last letter from the pension board that I just received. YOUR representative states this is exactly what is occuring. So, asshole unbeliever, I am only restating what our elected fund representative has stated. I am not getting anyone worried needlessly. Stay informed.
10/19
6:16am
In the Pension Advisor for October 2010 Mike Shields says,." Our liabilities are $8.9 billion. Our assets are$3.88 billion(actuarial value.)This leaves an unfunded portion of $5.02 billion. The shortfall is being covered by liquidating investments as needed to pay the benefits."
Sure sounds like something is being sold off.
They need to do what Joliet FD did with their pensions. When and I did say when the riverboats get the green light in the city - The Police and Fire pensions EACH get 1/2 a percent for funding...Its a GOLDMINE!!! Union reps on both sides need to FIGHT for it!!
before black friday the cpd pension fund was worth about 4 billion on paper--- how the hell do you not make any money on 4 billion dollars--- if memory serves me correctly we took a hit for about 200 million just like a lot of others did---- yes, that means that we lost 200 million dollars with assets approaching 4 billion--- the villian in the room is really the city--- they have not fully funded the pension which is going to cause a major cash flow problem in the not to distant future----
Anonymous said...
Really? You do not believe that OUR pension fund is selling assets? Then read the last letter from the pension board that I just received. YOUR representative states this is exactly what is occuring. So, asshole unbeliever, I am only restating what our elected fund representative has stated. I am not getting anyone worried needlessly. Stay informed.
10/19/2010 11:07:00 PM
Everything in the pension fund is considered an "asset."
If they write a check to go to an annuitant, that is considered selling an asset. There is no other source of funds. Current income (payments by the City and employees) is used both to generate income and pay annuitants.
The fund is down a lot from 2007 highs. Writing pension checks is considered selling assets. What else is there to pay annuitants but assets?
In a perfect world, the funds earn enough income to pay pension obligations but 2007 reduced a load of earnings. The fund is back up to around $3.3 billion from a low of around $2.4 billion.
It will take many more good years for the fund to once again be able to produce enough income from investments to pay all pension obligations.
The multiplier needs to be increased but the city will not hear of this. The amount we kick in needs to be increased but that means the cities amount would also go up, again the city doesn't want any solution that has the city paying more.
The city only wants the employees taking less benefits, working longer and contributing more.
Until someone figures out how to force the city to pay what they refuse to pay the fund will be below what is considered healthy.
Real numbers:
Annual payments into the pension fund by sworn members: $90 million
Annual payments into the pension fund by the City: $180 million
total = $270 million
Annual pension check payouts = $520 million
That leaves $250 million and it must come from somewhere so it is now coming from assets or investments, not earnings.
That is what is bad because the pension fund cannot at present levels earn enough to cover this $250 million difference.
That needs to be made up, an increase in sworn contributions needs to be made in addition to a corresponding amount (multiplier of 2.0) from the City.
However the City does not want any solution that has them paying more.
The problem then is how to pull a rabbit out of a hat.
That $250 million is just what is needed currently each year to pay annuitants. It isn't counting what needs to be added to increase the investment base.
retired guy said...
Yes, the pension is calling a meeting for all those in the fund on 21 October at the academy. The fund is now selling off assets to make the payouts and will run our of money in 9 years. And, they estimate, that it is impossible for the city to raise the money to keep this from happening. I never thought I would see this day come, but it sure looks like it is coming, at the very least, a severe cut in pensions for everyone, to include those already retired. And, if you do not think that this is possible because of the state constitution, I would not be so smug. With economy in the tank and unemployment so high, the city is not going to raise property taxes to any extent to fully fund the pensions. In fact, they cannot raise it high enough to make a difference.
10/19/2010 12:08:00 AM
Is this true? I'm a retired guy and I never heard of this meeting. If true, more info please.
those with less than 18 yrs are Fuked
Can I take all my money out with 15yrs and reinvest it? Any advice
Anonymous said...
10/19
6:16am
In the Pension Advisor for October 2010 Mike Shields says,." Our liabilities are $8.9 billion. Our assets are$3.88 billion(actuarial value.)This leaves an unfunded portion of $5.02 billion. The shortfall is being covered by liquidating investments as needed to pay the benefits."
Sure sounds like something is being sold off.
10/19/2010 11:39:00 PM
Upon review, you are correct sir. I am in error. My regrets.
That said, holy shit!
Anonymous said...
Really? You do not believe that OUR pension fund is selling assets? Then read the last letter from the pension board that I just received. YOUR representative states this is exactly what is occuring. So, asshole unbeliever, I am only restating what our elected fund representative has stated. I am not getting anyone worried needlessly. Stay informed.
10/19/2010 11:07:00 PM
"asshole unbeliever?"
Rather harsh Mr Anonymous. Just for an opinion which after checking, I found I was incorrect. sorry for making an incorrect statement.
Now go fuck yourself, asshole, jagoff, asshat, fuckwad, jerk, pinko liberal castro loving commie bastard.
Now we're even.
Does anyone have any information from the meeting/information session at the academy on Oct 21?
Tell ya what guys..I just retired, and Im scared shitless..I have some savings, but no wheres near enough to cover my ass if the pension fails. I cant work either cause Im sick. I didnt pay into S/S so Im not eligible there either.. If I lose my pension, I lose my life. I may as well get a room at the pacific garden Mission!!
just wait 401ks are around the corner what ever money u have in the pension will be put into a 401 k for you....
Anonymous said...
Can I take all my money out with 15yrs and reinvest it? Any advice
10/20/2010 11:51:00 AM
Max out in deferred comp and start going to church or go more often if you already go.
Post a Comment
<< Home