Another Pension Problem - Overestimation
Remember all those "budgets" Shortshanks, and now Rahm, issue annually? And how they always rely on "estimated" streams of revenue, none of which ever manage to meet expectations?
Guess who "estimates" rates-of-return in unrealistic terms?
Guess who "estimates" rates-of-return in unrealistic terms?
- Amid controversy over a new state law that seeks to rein in Illinois’ huge public pension debt, a report issued Tuesday by the state auditor general is questioning the projected investment returns from the state’s largest public retirement systems.
Auditor General William Holland issued the 236-page report on behalf of the firm hired as the state’s actuary, Cheiron, which urged that state pension systems for teachers outside Chicago, public university employees and state workers all lower their annual estimated rate of return on investments.
The report marked the second year in a row in which the actuarial consulting firm recommended that the three pension systems consider lowering the annual growth rate. None of the boards reduced the rate the last time. Concern over unreasonably high investment expectations has been fueled by the precarious situation for Illinois public pension systems, the worst funded in the nation.
How comforting that progress is being made....not.
Labels: pension
posted by SCC at 12:01 AM
29 Comments:
If it were late 18th Century France and I was Robespierre, I would cart almost every Democrat off to the guillotine for their midday beheading. Thousand would cheer. For those others, pay TV.
But, on the bright side, the speed cameras are bringing in TONS of cash. Maybe they can slide some of the overflow $$$ in the direction of the 'pension crisis', hmmm....
Yeah, I must be dreaming.
Keep voting for liberals and democrats. You south side irish have to be so proud of your handlers !
The Dow jumped from under 2000 to over 15000 in the last 30 years
Lowering the estimated return is another tactic by the anti pension forces.
The worse they portray pension liabilities the more they can argue for reductions in benefits
The pension mess will never be solved as long as unions and politicians are involved. You are doomed.
Not only are the estimates off but the state Pension system numbers are off too. For ex. Lisa Madigan's office won an over 100 million dollar suit that is suppose to go to the state pension system. Point is , I bet they did not factor that return inot their calculations.
estimating returns on investments is a tool for chicago politicians.
when you want to skip pension payments and redirect the money to clouted friends by awarding no-bid contracts or whatever you just inflate the earnings as high as you can.
see we can skip this payment because the pension money that's already invested is going to make all this money for us ...haahaha
no-one's gonna call you on it and the media is bought and paid for to keep their 'codeofsilence' mouths shut.
when the roi doesn't materialize just play the victim. claim that nobody knew...nobody could of possibly known. therefore it's not our fault
later...
when you've created the crisis that you can use....
you flip it and underestimate pension return on investments to make the estimates show that things are much worse and call for pension cuts.
after the cuts..
rinse--cycle--repeat
the greatest transfer of wealth of all times.
So...
Who gets to ride in the bitch seat of the federal prison bus for this?
>Crickets!<
The reason they don't lower the expected rate of return is because if they did the government entities responsible for PARTIALLY funding the plans would have to contribute more $$$.
-- Pension plan consultant (from a CPD family)
If you don't get money from the pension in the next 3 yrs Kiss it Good Bye ... Pension will be Belly Up
Detroit wants to pay 16Cents on every pension dollar earned and Detroit is in Better Shape than Chicago
Of course don't put in the required amounts, even though every last copper put in every check, and now as usual the rahm crew want us to "pay the rahm tax" quoting the millionaire gery chico who ran against rahm!
Did you really expect these fools to do the right thing?
There should always be a 0% return estimate.
So don't allow anyone to start collecting until age 60.
If you put your trust and your dollars in politicians promises, you deserve what you end up with, nothing. Chicago cops make more than enough that they should be saving and investing, instead of spending and depending on a promise of a pension to get them through their later years.
Fop should request a forensic audit of Chicago
Now that 2013 is over ,maybe our pension fund can report how much our investments made. Believe me it was plenty. They are always a few years behind so the politicians can say how underfunded the [ension are and as an excuse to try and get the employee contribution increased from 9% to 12% All smoke and mirrors. Think eveyone would be surprised at the investment return for 2012 and 2013. That alone should stop the politicians from trying to increase our contributings and lowering retirees benefits
Anonymous Anonymous said...
The reason they don't lower the expected rate of return is because if they did the government entities responsible for PARTIALLY funding the plans would have to contribute more $$$.
-- Pension plan consultant (from a CPD family)
1/01/2014 01:57:00 AM
to the pension plan consultant, if one were to resign from this shitty city and cash out on their pension what would be the tax penalty and how long would it take to receive the payout? is the rate the same or is based on time on the job or if already vested or what? thanks for your help or even better feel free to list your contact information on this post so myself and others could contact you directly.
Anonymous Anonymous said...
If you don't get money from the pension in the next 3 yrs Kiss it Good Bye ... Pension will be Belly Up
Detroit wants to pay 16Cents on every pension dollar earned and Detroit is in Better Shape than Chicago
1/01/2014 04:51:00 AM
ha you said it. shitcago is worse off than detroit. at least the big d has seen its darkest days and can only go in one direction, up. chiraq is a sinking ship and that is all there is to it.
Anonymous Anonymous said...
Not only are the estimates off but the state Pension system numbers are off too. For ex. Lisa Madigan's office won an over 100 million dollar suit that is suppose to go to the state pension system. Point is , I bet they did not factor that return inot their calculations.
1/01/2014 01:31:00 AM
Aw, come on, don't tease it. Explain, please.
Not only is there a problem with the money, but rumor has it they are going to be sued by three different attorneys and personally sued by another. Anyone hear about it?
Anonymous said...
If you don't get money from the pension in the next 3 yrs Kiss it Good Bye ... Pension will be Belly Up
Detroit wants to pay 16Cents on every pension dollar earned and Detroit is in Better Shape than Chicago
1/01/2014 04:51:00 AM
You have no idea what you are talking about. Last annual report in 2010 showed the pension fund increased the funds assets in both 2009 and 2010. That said it sure didnt go down in 2012 and 2013 when the stock market and the funds investments increased dramatically. Not BS, read the funds annual report
http://www.chipabf.org/ChicagoPolicePension/PDF/Financials/annual/Annual_Report_2010_Final.pdf
Anonymous Anonymous said...
Fop should request a forensic audit of Chicago
1/01/2014 11:22:00 AM
Great idea. And how should Fop request this audit? When someone down there with their head not too far up their ass and a few spare minutes, they can say, "Ummm, Mr Mayor, oh Mayor Emanuel, we would like to request a forensic audit of the City of Chicago. Ummm, excuse me, Mayor, did we say something funny? Hello, why are you doubled over in laughter Mayor? Mayor, Oh Mayor, what is so funny? Really. We are serious, we would like to request a forensic audit of Chicago. Seriously."
"Hmmm, Mayor, I am getting the impression that you are just not taking this request seriously. We are serious! If you don't do this forensic audit we will be forced to ask again!"
Like that? A forensic audit like that? That's what you mean?
Anonymous Anonymous said...
The Dow jumped from under 2000 to over 15000 in the last 30 years
1/01/2014 01:14:00 AM
And it can go right back down again a whole lot faster than 30 years.
City should return the 23,000,000 it owes to police pension fund
End gold braid pension , give 3% cola to officers born before jan 1,1960 now
End xo-captain pension
They are appointed like exempts
Anonymous Anonymous said...
Anonymous said...
If you don't get money from the pension in the next 3 yrs Kiss it Good Bye ... Pension will be Belly Up
Detroit wants to pay 16Cents on every pension dollar earned and Detroit is in Better Shape than Chicago
1/01/2014 04:51:00 AM
You have no idea what you are talking about. Last annual report in 2010 showed the pension fund increased the funds assets in both 2009 and 2010. That said it sure didnt go down in 2012 and 2013 when the stock market and the funds investments increased dramatically. Not BS, read the funds annual report
http://www.chipabf.org/ChicagoPolicePension/PDF/Financials/annual/Annual_Report_2010_Final.pdf
1/01/2014 07:50:00 PM
Poster 1 is buying the spin doctor's lies. The truth is, markets are back. Real estate is rebounding. Office vacancies downtown are the lowest in a decade. People are spending discretionary income again.
It's part of Emanuel's strategy to make the public BELIEVE the pensions are stumbling and a huge economic sinkhole, although they are NOT.
The worst is over, but Rahm sees a chance to slam pension cuts down our throats and he's telling every LIE he can think of to convince the public it's true.
What kind of fool is spouting the DOW going from 2,000 to 15,000 in 30 years? Guess what that is 6.9%, which is lower than what the pension funds are projecting. The pension funds do not invest in the DOW anyway so a worthless argument.
FOP get you're head out of your ass. You have no problem texting the Sun Times to save you're ass. Or calling press conferences to saved you're ass. There fucking with our pensions!!!!!! 94 million dollars in VRI!!!! 500 million for DePaul's stadium. 50 million for Maggie's Park. Selling the skyway and meters. I would love to see us come together as brothers and sisters in blue that walk the line between the savages and civility. These pompous liberals better look at the demographics of the city. The Flash mobs are just foreplay. Imagine in April no one signs up for VRI. Imagine one week of no revenue generated by us. We are the peacemakers. Our neighborhoods that we live in and our families are left unprotected. Millions of dollars for the dogs!!! The Bronx Ball Sack and Tiny Dancer do not care about our families. Then why the fuck hasn't FOP given the drunk a Vote of No Confidence? Quick to condemn Weis. He didn't close down districts or change the Detectives Division. Not to mention fuck up everything about our police department. One bad decision with Cozzi that Kirby advised him on. Martin, Rodriguez, Hillard, and Cline big fat zeros who did Daley's bidding. Weis was the best thing that happened to us. What's right is right!!!! 94 million dollars in VRI!!!!! Not one extra dime in raises for us. At least Weis published all the Meritorious Names. Guys like Wiberg and Cline couldn't hide behind their Daddy. Both tried to make Lt under Weis but he didn't bow down to them. We have a drunk as our Supt. and a FOP president that was the Mayor's whipping boy. I am so ashamed to be CPD!!!
FOP get you're head out of your ass. You have no problem texting the Sun Times to save you're ass. Or calling press conferences to saved you're ass. There fucking with our pensions!!!!!! 94 million dollars in VRI!!!! 500 million for DePaul's stadium. 50 million for Maggie's Park. Selling the skyway and meters. I would love to see us come together as brothers and sisters in blue that walk the line between the savages and civility. These pompous liberals better look at the demographics of the city. The Flash mobs are just foreplay. Imagine in April no one signs up for VRI. Imagine one week of no revenue generated by us. We are the peacemakers. Our neighborhoods that we live in and our families are left unprotected. Millions of dollars for the dogs!!! The Bronx Ball Sack and Tiny Dancer do not care about our families. Then why the fuck hasn't FOP given the drunk a Vote of No Confidence? Quick to condemn Weis. He didn't close down districts or change the Detectives Division. Not to mention fuck up everything about our police department. One bad decision with Cozzi that Kirby advised him on. Martin, Rodriguez, Hillard, and Cline big fat zeros who did Daley's bidding. Weis was the best thing that happened to us. What's right is right!!!! 94 million dollars in VRI!!!!! Not one extra dime in raises for us. At least Weis published all the Meritorious Names. Guys like Wiberg and Cline couldn't hide behind their Daddy. Both tried to make Lt under Weis but he didn't bow down to them. We have a drunk as our Supt. and a FOP president that was the Mayor's whipping boy. I am so ashamed to be CPD!!!
1/02/2014 08:36:00 AM
Awesome truthful post!!!!!
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