Pension Reform "Working"
If "working" means "it's going broke slower:"
- Reforms implemented three years ago to bolster the retirement plan for CTA employees are working satisfactorily so far, according to the results of a state audit released Tuesday.
The pension code requires that the funded ratio of the retirement plan not fall below 60 percent in all years through 2039. While still above 60 percent, the funded ratio decreased from 74.8 percent as of Jan. 1, 2010 to 70.1 percent as of Jan. 1, 2011...
That doesn't really solve the problem as far as we can tell. And it certainly doesn't explain the current City Administration fighting tooth and nail to purposefully underfund the pensions.
Labels: money questions
posted by SCC at 12:02 AM
26 Comments:
The politicians will love this story. They will now have to find ways to steal even more money as to level the playing field with the rest of the pensions they have been stealing from.
The same corrupt politicians who say they are going to "fix" the pension problems are the same thieves handing out hundreds of millions of $$$ to favored Illinois corporations to stay in our state. A total waste of taxpayer money. Imagine the back room deals with this program.
Off Topic but Important. If this was a police officer that stole $43,000 dollars, he would have gotten 5 years in prison. The crook FBI agent was only sentenced to 5 months!!!
Former FBI agent gets 10 months after admitting lying about missing $43,000
6:39 p.m.
PEORIA--Former FBI agent Jerry Nau was immediately taken into custody today after a federal judge sentenced him to 5 months in prison followed by 5 months of home confinement for lying about losing more than $43,000 in cash from a major narcotics investigation.
Full Story at CLTV.COM
Rahm is flapping his lips about this. He's saying this legislation doesn't go far enough that we need true pension reform and we need it now.
No doubt Rahm will continue his strong arming and back room politics to try and accomplish this. Regardless of what Rahm says it's all about him and what HE wants. Once this idiot gets a hair brained idea, and he has had many, he'll stop at nothing to try and accomplish it. It truly is his way or the highway.
Once again the poor working man has to fund his own pension. why cant these politicians be held accountable for not funding the pensions??? let them get jail time for not obeying the laws! until then all pensions will be under funded and run into the ground, blamed on us greedy workers for working 30 years to collect.
OT - Dont you also love how Rahm claims that HE has an idea on to honor Maggie Daley and will approach the family with it. Get the FK out of here. Nice try with the cover Rahm of who's idea it really is. FKU.
So long as former CTA chief-of-staff/cousin-in-charge/now Mayor's chief-of-staff gets her CTA pension! Why hasn't she been dismissed yet by Emmanuel?
Problems with Pension Fund
1. FOP letting city out of obligations during contract time for chump change ( retro ).
2. Declining number of people putting in money- cutbacks in personnel.
3. Gold Braid pension
4. Advisors
a. Like giving Vanecko millions
b. got taken for millions on the CDO-CMBS at the
nonsense-- other pension funds have been
suing for restitution- not ours- why--
Politically appointed advisors
5. The elected people on the board are basically
clueless about finance. Ask them about using a CMBS as a stream of income for annuity payments?
old retired guy
Good article about Emanuel being a dick: http://www.chicagotribune.com/news/local/ct-met-emanuel-fees-records-20111130,0,1336081.story
The bill to alter pensions for some union officials is now on the desk of our governor jello. If he signs this bill, one which alters pensions of existing employees, the employees are threatening to sue as a violation of the state constitution. In fact, the bills sponsors also stated that they doubt that any government is responsibile to make up the loses if one of the pension funds gos bankrupt. They stated they believe these pension changes are constitutional. The only reason they have not taken up pension changes for the rest of the current government employees is the fact they face reelection in the spring. So, as you can see, the handwriting is on the wall.As the man said in Rhode Island recently when their pension funds went under, no one can expect ever increasing pension payments for people who are now leading longer lives and expect that money to come from funds that are half empty and no amount of tolerable tax increases will help. One giant ponzi scheme.
•Reforms implemented three years ago to bolster the retirement plan for CTA employees are working satisfactorily so far, according to the results of a state audit released Tuesday.
The pension code requires that the funded ratio of the retirement plan not fall below 60 percent in all years through 2039. While still above 60 percent, the funded ratio decreased from 74.8 percent as of Jan. 1, 2010 to 70.1 percent as of Jan. 1, 2011...
That doesn't really solve the problem as far as we can tell. And it certainly doesn't explain the current City Administration fighting tooth and nail to purposefully underfund the pensions.
__________________________________
WOW 4% in one year. When I started on this job a little over 17 years ago we were funded at 70% and today I believe our pension is funded at what? 38, 37%.... how sad is that? And CTA lost 4% in one year. BEYOND SCARY PEOPLE, VERY SCARY
OT:
American’s bankruptcy filing shows it owes nearly $3.5 million to the city of Chicago and nearly $109 million to holders of bonds used to build its terminal at O’Hare. American’s parent company AMR Corp. owes Chicago-based Boeing Co. more than $15 million.
How much of that $3.5 mil will Rahm forgive and how much more tax incentives Quinn will dole out to keep AA here.
Not to mention Ohare Expansion continues on course and destined for cost overruns.
Now back to pension reform.
Entitlement programes, earned and otherwise, are ponzi scemes that depend on ever increasing groth in the working population. We no longer have that groth as 10,000 boomers a day leave the work force.
The systems are bound to collapse, the polititions know this and are attempting to steal as much as possible while it is still available.
What is the difference between theirs and ours ?
All new Hires to the City of Chicago should have to pay into 401k type plans for a pension. No more entries into any current City Pension Plans, without additional contributions for new hires.
as of Jan1, 2011 new hires to the CPD pay into our pension at our rate, but cant retire until 55 only real change is that its their last 8 years instead of the last 4 years for current CPD
Screw that 401K, let them pay into our pension
I'll take a lump sum buyout. I want what I put in plus 5% compounding PLUS a private sector type buyout....say 5 years upfront non taxed which can be directly deposited into deferred comp.
Anonymous said...
All new Hires to the City of Chicago should have to pay into 401k type plans for a pension. No more entries into any current City Pension Plans, without additional contributions for new hires.
11/30/2011 12:32:00 PM
That wonderful idea will make sure that the current fund goes under. The additional cost of running the seperate fund will be a great idea to save cost too?
I was listening to a radio show the other day and the host had a pension expert on who wrote a book about pensions and their costs. From what I got and the host finally got the expert to admit, was all that the current doomsayers are actually using numbers to scare the shit out of taxpayers. They take the number of people,(or positions), that are eligible for a pension and add up the cost for all the years that those positions will be on pension and add that to the total cost today. Good idea but all those people/positions are not taking their pensions now and all that money is not needed today. There is still time to adequately fund the pensions. How about adding all positions into the same funds including judges and politicians in the same funds????
How about anyone taking a pension only gets the pension for the rank that they last took an exam for? no more exempt pensions. You retire a Deputy but you were actually only a Lt. you get a Lt.'s pension...save your pennies with the Deputy salary. Probably make up with the next pension they will work at getting...
End Gold brade Pension
And the quicker us old guys die off the better...
American’s bankruptcy filing shows it owes nearly $3.5 million to the city of Chicago and nearly $109 million to holders of bonds used to build its terminal at O’Hare. American’s parent company AMR Corp. owes Chicago-based Boeing Co. more than $15 million.
How much of that $3.5 mil will Rahm forgive and how much more tax incentives Quinn will dole out to keep AA here.
Not to mention Ohare Expansion continues on course and destined for cost overruns.
Now back to pension reform.
11/30/2011 10:25:00
AA is not headquartered in Chicago.
AA needs O'hare it won't leave.
The lesson from AA should be how the employees will have their pensions and contracts obliterated.021
The way to fix these asshole politicians in our state is to enforce requirements for their positions just like we have requirements in order to keep OUR jobs. Aldermen, Mayor, etc will be all required to bring "x" amount of businesses here, "x" amount of new jobs, etc If they fail, then they're out and we vote to replace them.
Also, time to cut their pensions, security and the like
john said...
Problems with Pension Fund
1. FOP letting city out of obligations during contract time for chump change ( retro ).
2. Declining number of people putting in money- cutbacks in personnel.
3. Gold Braid pension
4. Advisors
a. Like giving Vanecko millions
b. got taken for millions on the CDO-CMBS at the
nonsense-- other pension funds have been
suing for restitution- not ours- why--
Politically appointed advisors
5. The elected people on the board are basically
clueless about finance. Ask them about using a CMBS as a stream of income for annuity payments?
old retired guy
***********************************
While much of what you say is true, I would dispute that the much misunderstood "Gold Braid Pension" is a major culprit since those affected put iin at their current rate of salary. It is disputable, I know. The CMBS (Commercial Mortgage Backed Securities) is another matter. Those losses were the result of a combination of the real estate bubble bursting and some damaging misleading information. Unfortunately most of the lawsuits about this that I am aware of are class action suits which yield very little to the plaintiffs. You miss one large point of difficulty involving the Pension Fund. Over the years many enhancements have been put in place generally yielding higher payout percentages and earlier retirements, with no increase in the percentage of payments by either the individual or the city. In other words greed.
To the individual who commented about my post. Class action suits usually end in some percentage -- better than nothing is my point. As for the Gold Braid-- a merit Lt. is made commander for 4 years and then gets a commanders pension-- please look at the retirements over the last years and you will many of these. As for the Pension Board taking any action against fraud-- I asked one of the reps in the early 90s concerning Saloman Brothers who was in trouble for bond fraud to various pension funds. I read articles that certain pension funds were receiving upwards of 2 million dollars to be made whole. The Pension Rep more or less said it was not worth their time. Just like in 2007 I asked a Rep about the Funds exposure to CDO,CMBS and the rest of the derivative nonsense. He looked at me and stated he would answer the question later- 10 minutes later he was observed ducking out the back door.
I do agree with you about increase benefits without increased assets. I do wonder how the buy backs concerning those that have suburban credits will deplete the fund.
old retired guy
The underfunded pensions and the unafordable pensions are a problem in just about every civilized country in the world. If the economy stays in the tank and the euro goes bust, it will take many years for the governments to recover and by then the pension funds might be out of money. This is monumental crisis that is going to effect many people if there are not reforms NOW. Even the retirees, of which I am one, should be willing to reduce their pensions to keep these funds afloat. Every actuary is saying the same thing : the funds cannot sustain as they are currently set up. If the city goes bankrupt in the future, the funds go kaput.
One other thing I forgot to mention. Those financial advisors with our money. They are not the best or the brightest. Look at Ariel Capital Management. It is run by John Rogers who is one of BHO's friends. Rogers has political roots that go way back-- remember Judge Rogers in Juvie Court?- his father. I have no idea how Ariel Capital has done with our money but I can say this; unless the world comes to end, they will keep their piece of the pie. This is just one example, I would imagine all the Financial People who have our money all have political ties. Just the way it is.
old retired guy
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