And Another Thing....
Regarding yesterday's post about the ill-health of the pension.
How did the fund go from 61.4% funded in 2003 all the way down to under-30% funded by 2016?
Some people need to be in jail over that.
How did the fund go from 61.4% funded in 2003 all the way down to under-30% funded by 2016?
Some people need to be in jail over that.
Labels: pension
posted by SCC at 12:02 AM
59 Comments:
TIF....ask Rahm.....
There is not one private sector union defined benefit pension plan in the U.S. that gives their membership an annual 3% compounding increase. That is still solvent, of course. Where do you think all that money is going to come from? Your ever increasing standard of wealth in your large city? My advice to you is: live small and save big.
Probably the same thieves that almost broke the College Illinois fund. Daley/Vanecko
Some people need to be in jail over that.
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Or sent on a one-way trip to HELL.
Dean angelo and Mike Lappe need to be asked to explain the numbers below about our pension administrative cost. You two guys are in charge and want to address waste well here have it.
Below are numbers for wha our pension fund spends every year since 2006 to 2015 on medical doctor reports and doctor consulting fees. Then below are legal fees. Since 2006 the pension board has authorized a total of 2,841,316 dollars. Almost 2.9 million on doctor consulting. This is a total waste of money. Mr. Lappe raves about saving money on coppers being on bs for injuries and he the allows this much money go to this. This is called special interest Lappe and Deano. This is a example of taking care of others and not your own who did there jobs and risked their lives. Lappe and Angelo need to get real about this and called out. Angelo now is back to the department and has miraculously healed. He will retire with bump in pension due to leaving with a higher salary. How convenient Dean.
These numbers blow my mind in how high they jump between 2008 to 2015. This is waste and needs to be addresses as officers are having benefits taking against the CBA while Dean does nothing . Dean what about Don O'Neills double dipping self. He was your partner back in the day. Lappe and Dean should address gold braid pensions as well.
Focus officers. Angelo and Lappe are scum.
Doctors fees
2006: $87,999
2007: $176,978
2008: $217,251
2009: $240,341
2010: $187,073
2011: $238,718
2012: $374,528
2013: $448,196
2014: $403,884
2015: $466,348
Total: $2,841,316 in just doctor consulting
How many officers have been removed from disability and how much money has been saved for our pension fund Lappe and Disability Dean?
legal fees
2006: $160,927
2007: $215,430
2008: $240,450
2009: $291,210
2010: $315,263
2011: $270,867
2012: $753,508
2013: $461,222
2014: $452,729
Total : $3,161,606 in legal fees lost from our pension fund to friends of Lappe and Disability Dean
Keep in mind the lawyer that represents the pension fund who we pay Kugler has his family members on the pension payroll as well.
Dean Angelo and Ray Casiano hired Maggie O'Grady who 4 years ago retired from working at the pension board and gets a pension from our fund and now collects a paycheck and double dips all on the backs of working cops.
Look at that money disappear
How you ask? Daley, Emanuel and last but not least Michael Madigan!
Richard Daley
Allison Davis
Robert Vanecko
To answer the question about the pension---- look to what Rham said back in the 90s--"You never let a serious crisis go to waste. And what I mean by that it's an opportunity to do things you think you could not do before." In about 10 years you will see exactly what another person said--- payout and turned into a 401k.... I am not saying this, it's clearly visible, just open your eyes. And no... alderman will not get this treatment because they are gonna do this to us. Know who you work for. Any financial person would tell you, 30 years ago, the pension should had been switch to an annuity account, police officers would had a better deal with a private annuity, tax payers would be better off with the switch as well... but today the pension is fuck. Blame who ever, it is too later. Pension is fucked
The Fed' are coming, give the new administration some time to get here and kick ass. Our President only been in office for less then two months. He is still trying to clean the W.H of the old guard (Barry and company) that want to over throw him by feeding the media with bull shit and leaks. Have faith !
Hopefully the federal courts will have to build a new court house for all the new corruption trials.
Rahn is not slick like Richie was, no one will fall on the sword for him.
Easy answer - the City is shorting its funding requirement for the pension.
What I don't understand is - where is all the oversight?
With all the patronage jobs in Chicago, no one is watching the budget and what priority areas need to be funded? No accountants anywhere? (too many relatives with no skill sets!?!?)
What about all the crack, super-intelligent Aldermen who get paid to run the city and its finances? Isn't Ed Burke in charge of Finance? What about other committees? Police and Fire?
Doesn't anyone read the quarterly pension statements? Does anyone even request them? Can anyone even read a balance sheet?
OK - if not anyone who is a city employee, what about all those lucrative contracts to outsiders like Accounting firms dedicated to auditing the revenues and expenses and making sure priority payments are paid? What about the pension managers? Are ALL of them quiet when it comes to reporting the solvency of your pensions? I am sure they ALL get a nice annual fee for managing the pension(s).
What about FOP? Aren't they paid handsomely to "get the best deal for their membership"? Why are you re-electing a bunch of morons?
If the pension is short-funded (and it IS), don't come running around asking for the State to bail you out.
Go back to all those who are supposed to review and keep track of its solvency year-after-year and ask them to fund what they overlooked - FOR YEARS!
Who cares about pensions?
As long as the state has passed its "Zombie Apocalypse" Act to make sure we are prepared to handle the Walking Dead, I am satisfied.
WTF?!?!?!? Who do we have running this state???
We have OVER $135 Billion in short-funded pensions (if not more) and we are worried about Zombies?
Who the F$%K are these people?
Forget your pensions. Sounds like the state bought out the Cutlery Show's ZOMBIE Knife sets (the ones with the Neon Green handles) to hand out to every citizen (at least the ones on Entitlements) so they can have a fighting chance against the Zombies when they attack.
I can hear some of the State Reps from Chicago,
"We gots to be prepared for Zombies! Eberyone of my constituents needs these Knife kits to protects themselves. This be serious."
"Pensions?!?!? I don't know if we needs money for dat, but Zombies? Now THAT is a state priority!"
I completely agree with you SCC.
I don't understand how this is not a breach of fiduciary duty.... at the very, very least.
Some heads need to roll and some assholes need to be in prison.
They've effectively fleeced and stolen our secure retirement.
The Daley-Emanuel Democratic death spiral continues.
F@ck jail they should be in Hell...
For the umpteen millionth time, the 3% COLA is NOT compounded!
Perhaps now that the justice department is run by a real American, coupled with the fact that President The Donald hates Rahm, something might be done.
Anonymous Anonymous said...
??????????????????????????
3/08/2017 12:40:00 AM
1. When the stock market took a nose dive in 2008 every pension plan in the country took a hit not just ours.
2. When Donahue got us 29 and a day over 32 and a day he allowed the city keep a 25 million dollar payment that was due. Without any additional funding to cover the missed 3 years the plan took a long term 6.5% hit in that action alone.
3. Legal fees and doctor fees are up because they have put over 125 officers back to work that were on disability over the last 5 years. Most fought this and used the process to prolong it as long as possible.
When your on disabled for a bad leg don’t put on facebook about you best time in a recent 10k race. If you have a bad back don’t lay 10k paver bricks in your driveway. You neighbors may take pictures. If you have a bad shoulder don’t roof your house and carry the shingles up the ladder yourself. You neighbors may video it and sent in to the pension fund.
125 officers back to work means maybe 8.75 million less going out and 2,362,00 coming in. (Your 9% and the cities 18%)
4. Maggie O’Grady is getting a pension regardless. FOP should hire a novice off the street to do the work she was already the go to person that the FOP went to for answers? She was a great hire if you ask me.
Question what is the ax you are grinding? Were yo put back to work?
But I do agree gold braid pensions have to go. With he command staff full of multiple meritorious promotes it is a drain.
To the person who keeps posting about the Dean and Mike Lappe nonsense concerning the payment of doctors and lawyers to keep disability abuse in check. I posted this earlier and will post again.
If you keep 7 non-deserving disability scammers off the pension a year-- ONLY 7
For the next 10 years.
Equals 385 years of payments - say 60k a year
And you save 23 million over that period of time. How much did the doctors and lawyers cost?
That is a nice return on your investment
It is just math-- figure it out
Bernie Madoff is in the joint for stealing investors money....The democrats in this state did and are doing the same thing and what do they get? Re elected. ♠
From a professional money manager / investment adviser. The usual culprits are:
1. Failure to make contributions;
2. Poor investment returns, i.e., ones below the assumed actuarial rate;
3. Change in actuarial rate - lowering it is generally deemed prudent, however, it raises required contributions (and may increase underfunding);
4. An older workforce. As times moves forward, you are entitled to more. Are the demographics of the CPD getting older?
That said, I recommend SCC contact Truth in Accounting [ truthinaccounting.org ], a not for profit based here in Chicago, and get their feedback. From their About: "TIA stands for Truth in Accounting™, the organization that operates this website. TIA was founded in 2002 to "compel governments to produce financial reports that are understandable, reliable, transparent and correct." It is a nonpartisan, non-profit organization headquartered in Chicago, Illinois."
Did not the FOP just lobby to get COLAs for more retirees? A political move that has horrible consequences on the Fund in the long term. COLAs kill pension funds- do your own homework on that.
Some people? A lot of people.
Anonymous Anonymous said...
TIF....ask Rahm.....
3/08/2017 12:09:00 AM
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You mean depose dickhead Daley and get the real deal! lol
In my humble opinion: People who plan to rely on a pension need to sit down at their computer and learn to use a spreadsheet. They need to assume the following numbers:
Age to retirement
Life expectancy
Interest rate of investments
From those numbers, use the spreadsheet to determine the pension contribution needed each year. Then, put the politicians' feet to the fire if that contribution is not met in any given year!
Anonymous Anonymous said...
There is not one private sector union defined benefit pension plan in the U.S. that gives their membership an annual 3% compounding increase. That is still solvent, of course. Where do you think all that money is going to come from? Your ever increasing standard of wealth in your large city? My advice to you is: live small and save big.
3/08/2017 12:15:00 AM
Sorry, ours isn't compounded.
Anonymous said...
There is not one private sector union defined benefit pension plan in the U.S. that gives their membership an annual 3% compounding increase. That is still solvent, of course. Where do you think all that money is going to come from? Your ever increasing standard of wealth in your large city? My advice to you is: live small and save big.
3/08/2017 12:15:00 AM
You sir, or madam, whichever applies, is an uninformed asshat. The CPD pension is one of the only pension funds in Illinois that does not get a compounded annual raise.
There is not one private sector union defined benefit pension plan in the U.S. that gives their membership an annual 3% compounding increase. That is still solvent, of course. Where do you think all that money is going to come from? Your ever increasing standard of wealth in your large city? My advice to you is: live small and save bi
It's NOT compounded ! Know the facts before you speak. So you are wrong.
Only an Illinois sports book will save the pensions. It will be here soon no matter how hard the outfit guys cry.
75% duty disability should be for police officers that have been injured and unable to drive , walk , etc
If you can walk ,talk,drive go on vacations ,work at other jobs ,
You should be required to report for work
Review , front office , headquarters as a computer operator ,records clerk etc
Free ride by the scammers that are lazy ,afraid of the street should get one year on medical and 50% for a maximum of 4 years
Jail them all......F@ck Sh@t F@ck.
The actuaries warned the city many years ago. And maybe 5 years ago.you need some things.massive city contributions and massive hiring.or a big fed type of bailout. I can't see any of these things happening. The pension is kinda like a pyramid scam...you need many people coming in to cover the people leaving. I don't see a happy ending for us?
There must be a combination of reason for this to have occurred, however, one of the reasons is bad investments and a lack of understanding the market under obama. Now to help our fund get back to 70%, hire 2000 police officer, work on cost of running the fund and invest in the market considering that there's a new president and new ideas on how he's going to spend our tax dollars.l
Sad very sad and yet no media coverage!
Dean gave up a state mandated schedule of funding for the pension, in exchange for the profits from a casino. It will be years before a casino is built and becomes profitable, if it ever shows a profit using City Hall math. The pension fund is on life support.
SCC: Some people need to be in jail over that
Jail?! in Illinois?!
Class of 65: to poster 3/8/17 12:40 AM you partially correct on your post. Maggie O'Grady was a great hire. She knows the pension inside and out. Why not hire someone who has her knowledge work at the lodge to help Police Officers with pension problems. What do you want, someone who is not sure or does know, guess what you should do? Isn't it better to have someone who ACTUALLY KNOWS THE PENSION AND ITS RULES HELP YOU OUT? When O'Grady was working at the pension board, she helped hundreds of Police Officers who had either questions or problems. I had a problem, I has a problem when I retired with the pension. O'Grady helped me and resolved the problem. As far as double dipping, how many Police Officers double dip? How many PO's retire and go on to some other government job? I am not criticizing one the monies spent on doctor's fee's. You are correct and I agree with you. But to disagree on the hiring O'Grady with all of her knowledge of the pension, it's rules and regulations, and the workings of the pension process, sorry you are wrong.
But......but.........I thought the mayor made his court mandated contribution like he was supposed to, didn't he?
Meanwhile................parks get built, bike lanes are installed, everything else except what he is legally obligated to do.
(OT) Just another case of the 24/7 dishonest media beating a dead horse the bashing continues the media said many times is not our friends:
http://www.fox32chicago.com/news/crime/240254052-story
Stay fetal keep your job family pension freedom protect blue, shut your mouth around media! This case has caused so much heartache all because rahm held the video for politics purposes as he threw CPD officers to the curb! It's not what you do but what you did that haunts you!
There is not one private sector union defined benefit pension plan in the U.S. that gives their membership an annual 3% compounding increase. That is still solvent, of course. Where do you think all that money is going to come from? Your ever increasing standard of wealth in your large city? My advice to you is: live small and save big.
3/08/2017 12:15:00 AM
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Hey MORON:
We DO NOT get any compounded increase.
Now go back to your Mom's basement ass-wipe.
If I remember, Daley appointed some of his relatives to invest the pension money, they lost ( stole ) tens of millions on investment with their pals and basically just gave our pension money away.
Just wait until COLAs go away.
Hauser has been on the pension board for over 20 years. He should be tarred and feathered.
It's all legit just ask your alderman.
When did a bad investor ever go to jail?
Even Davis-Vanecko $68 million ($15mil CPD) Pension Real Estate Deal was shrugged off as nothing and yet still D-V Urban Real Estate and affiliates made $9 million in fees BEFORE lossing those funds, its all legitimate in the world of high finance. 13.5% is a hefty commission for any real estate deal, especially when you have nothing to lose. They're still in business.
Can't sue a snake Daley Company and expect to win anything back either, that's when they dissolve the LLC and restart with new Board.
I said before, if the City could invest money into those with the schemes. The City would be financially rated AAAAA+.
Rahm is always eager to refinance loans for a lower interest rate...the banks make it up in fees, plus he gets a kickback to his donor PAC.
To, Anonymous Anonymous said...
Dean angelo and Mike Lappe need to be asked to explain the numbers below about our pension administrative cost. You two guys are in charge and want to address waste well here have it.
Your numbers are impressive, but you fail to take into consideration the 60+ who have been forced off disability through their cheating ways. If you consider, lets say, 60 PO's who are no longer abusing Disability on average lets say of $50,000 each per year. Thats a SAVINGS of $3,000,000 per year. After two years the Pension fund is even and the rest is just BONAS money saved into our pension fund.
I am not a big fan of Dean Angelo (I believe he abused this very system), but like him or hate him Lappe has saved money to the pension fund in the long run.
2:15AM......
The Cola increase is simple, not compounding interest.
Anonymous Anonymous said...
Did not the FOP just lobby to get COLAs for more retirees? A political move that has horrible consequences on the Fund in the long term. COLAs kill pension funds- do your own homework on that.
3/08/2017 08:04:00 AM
Horrible consequences is not having pension based on civil service rank like fire eliminated the gold braid pension theft where is the parity? Why does mayors people get commander and sergeants pensions all being 9161 patrolmen?
Anonymous Anonymous said...
When did a bad investor ever go to jail?
Even Davis-Vanecko $68 million ($15mil CPD) Pension Real Estate Deal was shrugged off as nothing and yet still D-V Urban Real Estate and affiliates made $9 million in fees BEFORE lossing those funds, its all legitimate in the world of high finance. 13.5% is a hefty commission for any real estate deal, especially when you have nothing to lose. They're still in business.
Can't sue a snake Daley Company and expect to win anything back either, that's when they dissolve the LLC and restart with new Board.
I said before, if the City could invest money into those with the schemes. The City would be financially rated AAAAA+.
Rahm is always eager to refinance loans for a lower interest rate...the banks make it up in fees, plus he gets a kickback to his donor PAC.
3/08/2017 03:23:00 PM
Who at the pension board gave away on money? "Lock them up!"
Maggie O'Grady is the last person anyone should pick on! Maggie is a hard worker and truly cares about the troops. She was the only employee at the pension board that would go out of her way to help you---I know as I am one of those she helped.
Anonymous Anonymous said...
There is not one private sector union defined benefit pension plan in the U.S. that gives their membership an annual 3% compounding increase. That is still solvent, of course. Where do you think all that money is going to come from? Your ever increasing standard of wealth in your large city? My advice to you is: live small and save big.
3/08/2017 12:15:00 AM
==================================
Obviously, you are not the police or you would know that our COLA does not compound.
Amen
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We should have been paying more into the pension years ago when the department contracted the workforce. All the BS that the city screwed us grows old. The reality is if we do not pay more we will see diminished returns. Also, end COLA except for those born before 1955. We promise too much.
If you wait for politicians to solve this with promises you will have NOTHING!!!
And you still haven't ...
I'd suspect the funding issue happened when they were making high returns on investments during the "pre-bubble" or "pre-financial sector" meltdown, and so they came up with the usual bullshit about not having to set aside as much money because they were making it via investment returns.
Then the SHTF and investments tanked. They hadn't set aside cash, so it really drilled in deep...
A clusterfuck to be certain, but not unexpected here in the Shitty of Chiraq, County of Crook, and State of Madiganstan.
Wishing you best on your collection effort.
Anonymous Anonymous said...
Maggie O'Grady is the last person anyone should pick on! Maggie is a hard worker and truly cares about the troops. She was the only employee at the pension board that would go out of her way to help you---I know as I am one of those she helped.
3/08/2017 05:52:00 PM
Agreed she helped me also great person!!
Anonymous said...
Anonymous Anonymous said...
Did not the FOP just lobby to get COLAs for more retirees? A political move that has horrible consequences on the Fund in the long term. COLAs kill pension funds- do your own homework on that.
3/08/2017 08:04:00 AM
Horrible consequences is not having pension based on civil service rank like fire eliminated the gold braid pension theft where is the parity? Why does mayors people get commander and sergeants pensions all being 9161 patrolmen?
3/08/2017 04:07:00 PM
Why do they get the huge pension boost also? making the extra cash OK but then raping the pension fund for being a valet come on stop the madness! Rahm your guys your rules ridiculous! Fire stopped the gold braid stupidity years ago why are we allowing this blatant pension theft? Come on hauser lappe you say your all about saving the pension and you allow this? Who gave the 60 million to dv urban investments daleys family who signed off? have the feds looked into this yet?
Amen
----------------------------------------------------------------------
We should have been paying more into the pension years ago when the department contracted the workforce. All the BS that the city screwed us grows old. The reality is if we do not pay more we will see diminished returns. Also, end COLA except for those born before 1955. We promise too much.
If you wait for politicians to solve this with promises you will have NOTHING!!!
You have t learned yet. The more you pay the more the politicians spend. Never ending. The never have enough money to spend so don't be stupid and fall for that raise their contribution bullshit
We should have been paying more into the pension years ago when the department contracted the workforce. All the BS that the city screwed us grows old. The reality is if we do not pay more we will see diminished returns. Also, end COLA except for those born before 1955. We promise too much.
If you wait for politicians to solve this with promises you will have NOTHING!!
We already pay 10%. The problem has always been the cities share. The city has not come close to paying their share for the year in over 30 years.We could have increased our share to 12% and we would still be in this predicament.Not even sure if the city ever put the $550 million into our pension fund like they were suppose to in 2016.Doesn t help that the union is in bed with the city.
Maggie O'Grady! This woman could be the CEO of AT and T/ Her heart is total CHICAGO, if she was mayor, the city would be like 1940 again, no crime, no tax to die taxes, and a great city.
Only thing Dean did right ! Someone with a brain there told him to hire her.
If you met her, you loved her, no better in all her services to city and FOP.
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