And Speaking of Pensions...
- You don't need to be an expert in the dense, convoluted math unpinning public pension systems to understand why this is bad news.
During 2015, the two pension plans for Chicago city employees paid out $999 million in retirement benefits to 29,286 retirees. During that same year, the two funds generated just $90 million in investment income.
To call that a massive shortfall would be a, well, massive understatement.
Here's why it matters. Investment returns are one of three ways that money gets into public pension plans—the other two being contributions from public employees themselves and contributions from taxpayers. Contributions from employees are set at fixed levels based on contracts, so a shortfall in investment returns means that either taxpayers are picking up the tab or the pension fund is running in the red. In Chicago, both of those things are happening.
But Rahm finds money for a stadium that no one is going to go to, a lighting project that will save nothing in the short term (but benefits the Electrician Union), bike lanes that have done nothing but ruin traffic flow, a downtown "circulator," the list is near endless.
And Rahm is going to jeopardize billions to protect lawbreakers.
And Rahm is going to jeopardize billions to protect lawbreakers.
Labels: money questions, pension
posted by SCC at 12:03 AM
52 Comments:
We're not going to have a pension when we retire.
"Gold Braid" pensions = legalized bribery for inveterate suckholes..
The politicians realize that the pensions are beyond hope, no point throwing good money after bad. Far better to make self serving lucrative deals. We are fucked.
There is one single reason our pensions are broke. The Fop and PBPA should be running news adds weekly explaining why. It has nothing to do with the amount we pay in. Those standards are complete good. Even with the market crash . THE CITY HASN'T PAID THEIR PORTION IN OVER 10yrs......POSSIBLY EVEN 15. Without their required payments to gain interest and shore up the red we are doomed. This is the major reason for our terrible percentage.
A secondary cause could be argued Regarding the gold braid pension these bosses get. Never being required to pay more towards the fund, but are rewarded with much higher pensions for their work. It's a joke and needs be high on the Fop list for attack if they're serious about helping our pension situation.
We are not the bad guys. Our fund would be solvent if the city actually paid their portion.
The State of Illinois, County of Cook, and City of Chicago will save BILLIONS if they cut out aid to Illegal aliens and their families. BILLIONS. This does not matter to the Democrats. These Democrats are hell bent of destroying the white middle and upper classes. Black leadership should be demanding an end to the sanctuary city bullshit. Lower class and middle class blacks are the ones hurting the most from the funds being diverted away from their neighborhoods. Jesse Jackson, Preckwinkle, and others want more illegals here and not less. It doesn't make sense.
And here we are, with both funds in the red, and taxpayers pissed. Why not just make the funds fully one way or the other - either raise taxes enormously, or let the pensions fail so the city can be sued.
Rahm is a stone cold asshole who from day one has disagreed with our pension thus he has refused to properly fund it.
That's an intentional breach of fiduciary duty and he should be in jail for it.
So none of the elected officals and their appointees will be held accountable for this massive financial mess. Bernie Madoff was sent to prison for life for what they said was the largest financial fraud (estimates 12 to 20 billion) from investors. His scheme sounds like peanuts to this. Could we at least get a written reprimand on these politicians! We should start deposing them, even that guy that gets deathly ill when he hears the word deposition! Be frugal with your money, pensions don't look like they will last very long.
If anyone seen Rocky 5... Remember how Rocky got fucked out of his money??? He had a bozo in charge of his finances--- someone the pension deal would had certainly hire because he had too many vowels in his last name. Rocky learned 30 years ago, now it's our turn--- done in may guys... Adios
OT - another article on Reason regarding Naloxone:
Maine's Republican Gov. Paul LePage seems to really want opioid users to die. After his state suffered 272 overdose deaths in 2015, the legislature sensibly and humanely passed a law allowing pharmacists to dispense naloxone, a drug that can actually reverse opioid overdoses in process, without a prescription.
In April, LePage vetoed the bill. In his view, he explained, "Naloxone does not truly save lives; it merely extends them until the next overdose." This, he said, "serves only to perpetuate the cycle of addiction." But later the same month, the legislature overrode the veto by vast margins: 29–5 in the Senate and 132–14 in the House.
Naloxone is available from pharmacists without a prescription in 35 states. In recognition of its lifesaving properties—and of America's 200 percent increase in opioid overdose deaths this century—various interest groups, from patients to urban health officials, are urging the Food and Drug Administration to make it available over-the-counter nationally, with no need to deal with a pharmacist at all.
Any idea where the State of IL and/or City of Chicago stand on this issue?
The DOJ needs to convene a Grand Jury and indite this ASSHOLE Emanuel and these idiot Mayors in New York, and LA and San Francisco . for the FEDERAL Felonies they are committing. Put these JAGOFFS in jail after a trial and the rest of the Sanctuary City Dick Heads will all fall in line.......
The press is always impressed with the big numbers. I was taught to "common size" the numbers if you want to compare them. Divide the 999,000,000 payout by the number of people receiving benefits 29,200. The result is 34,000 per retiree. Certainly not out of line, right?
Lets not throw the command staff completely under the bus. It's not their pension benefits creating (or even exacerbating) the problem. If you add paying 100 people 100,000 per year, that is adding a total of 10 million to the almost 1 billion dollar payout. "Common size" the numbers by eliminating zeros 10,000,000/1,000,000,000 = 10/1000 = 1%
1% is not even a pimple on the 1 billion dollar ass, not to mention the 286 billion dollar funding shortfall. The problem is with the employer in the form of contributions and fund management.
Pray that the big boys save their nickles, because when pension reform comes, the cuts are deeper at the top. 10% across the board is 3,400 on the average, but 10,000 at the top.
Your chinaman is a crook, weather you want to believe it or not.
We have four reps on the Pension Board and they have been as quiet as church mouses in uncovering any shortcomings. They should be screaming if adequate payments are not made. Lawsuits should be immediate. I have watched out funding level fall from 70% to 25%. The argument that they "never missed a payment" is lame. Does a doctor wait until you have Stage 4 cancer until he operates. FOP and PBPA should follow the lead of the Teachers Union. Karen Lewis would march her fat ass around City Hall every day for a month to being attention to this.
I'm leaving now with 26yrs!!!! Going on the wife's insurance. Getting my pension before it's gone
Anonymous said...
There is one single reason our pensions are broke. The Fop and PBPA should be running news adds weekly explaining why. It has nothing to do with the amount we pay in. Those standards are complete good. Even with the market crash . THE CITY HASN'T PAID THEIR PORTION IN OVER 10yrs......POSSIBLY EVEN 15. Without their required payments to gain interest and shore up the red we are doomed. This is the major reason for our terrible percentage.
**************************************************
This is untrue. The pension mess goes way beyond payments by the city, but they have made their required contributions every year. You can look it up at the Pension Board Website. I do not know about the increase contributions that the legislature required starting in 2016, but I believe that has been made also.
And Deano gave him a pass.....
That's on average 34k per retiree per year. Hope you have a separate savings or 401k, but maybe you like cat food.
Grandfather everyone who is on right now and suck it up and figure out a way pay them. If you want to not pay a pension, tell the new guys they are getting a 401K, don't fuck those that have paid into it already.
Not a pension fund guru or expert. But is it listed what stocks your pensions invest in? In the past 10 years were they ever invested in Facebook, Google, Apple or Amazon, if not why not? Jeff Bezos of Amazon is now the second richest man in the fucking world. His stock has skyrocketed. That stock was not a gamble. If your stock guru is not putting your money into those, then why are they still getting paid? Also, will Vanecko ever get charged?
The unions are to blame also,never made the city [daley] pay what it was supposed to!
This is one of the major reasons I relocated my business from the City of Chicago to Carmel, Indiana two years ago. I'm 58, nearing retirement from my private sector business. The amount of debt associated with present and future pension fund shortfalls will fall on the business, middle and upper class property taxpayers of Chicago. The non-stop upward grind in Chicago and Cook County of all types of increasing taxes to pay for all the bullshit nonsense will only increase substantially in the future as politicians like Rahm and Toni continue to stick it to those who have money.
Here's what these asshat politicians don't get. As people near retirement, they look for a safe, lower cost area to live and they want to cut living expenses. They are mobile and have choices and are getting out.
The article mentioned three sources of pension income; investment returns, taxpayer funds and employee contributions. What it did not mentioned is that if investment returns tank to 0%-2% as in the last recession in 2007+, what makes up the shortfall? Increase the property taxes.
Glad I got the hell out. Keep up the good work SCC.
Anonymous said...
Rahm is a stone cold asshole who from day one has disagreed with our pension thus he has refused to properly fund it.
That's an intentional breach of fiduciary duty and he should be in jail for it.
4/02/2017 03:03:00 AM
This problem goes back a lot farther then Rahm.
Real estate deals with Vanecko that the board approved. A Lt of Police as the chief investment officer for over a year. Money given to political investment firms. All approved by the pension board.
Once again Rham has money for all his pet projects and none for the pension! When is the bga, media, fop, ever going expose the truth with what Rham, Daley and the polititions are doing! Stop blaming the working man, we have paid our share into the pensions! Why doesn't the fop sue the city and have the real books open, look at those tif funds?
I find it interesting that the Chief Financial Officer for the city, Summers, was able to make millions on investments while the rest of the city is struggling.
Something is very fishy!
Adding to the problem is the senseless layers of command staff. For example take ISD Unit 125, they have a Deputy Chief who will be promoted to Chief (sometime in April), a Director, Captain, Lieutenant. That unit could be run by the current Director all on his own. He is competent. They could return the Lieutenant and Captain back to patrol where they belong and could be much more useful than in the I.T. world where they know nothing about it, yet make decisions that will affect many others. Also adding to the problem is all the Exempts who retire and comeback as civilians like Rousel, and Skahil and many others working currently at Headquarters. Either no one cares or just don't think about the long term disaster that will bring it all down.
Take a look at the month by month or year by year retirement lists.
This used to be job where you stayed for 32 and a day till age 60 to get free insurance till medicare @ 70 pct'.
But along comes the wife or daughter who gets hired and brings the 2nd income while sitting in a spot versus pushing a car for 3 rotating shifts because she has to have time to raise her family. And after reaching 20 years & 50 yoa I think it's time to go cause they are saying I gotta man a car. Just look at the retirement postings of years of service by sex, it isn't prejudice just facts.
So somebody whispers in daley's ear give 'em 29 and a day at 75 pct', erase the 30 year 3 pct step raise and let 'em off on pension and we'll give 'em insurance, it's cheaper than paying the top earners and pension contributions and who gives a fuck if the pension is insolvent we'll be riding off into the sunset too.
So the crime numbers killing comes to roost when the Hall says see less crime, no need to hire and it multiplies the lack of contribution by the membership and city and the last 10 years have probably seen the greatest disparity in hiring and retirement.
As for me, 33 years at age 61, 29+ 1 @ 55 didn't do anything for me.
And his legacy will be that the twerp fink was the worst Chicago mayor to ever be re-elected by the dead...
A decent pension to look forward to in your golden years after a lifetime of service to the ingrates of this shithole was the last major incentive for enlisting in a career saturated in hazardous conditions, perilous situations, incompetent leadership, and politics with little (if any) help or support from the department or city. Once they take that away, in addition to lowering the standards to bedrock level, the city will have to import 3rd world refugees to take this job, which shouldn't be too hard considering that is what their end goal is anyway. They will make less than McD's employees with even fewer benefits. It's the mayor's wet dream.
In government of republican form, we must require our legislatures to earmark each and every dime of taxpayer monies set for expenditure, yes, even pension plan allocation. Whether it be a LED lighting program or a road underneath that light, or a welfare block grant or, well ANYTHING. Earmarking accomplished two things, at each end of the general House/Senate vote of passage. One the one hand, we get to see WHO is the ONE who put in FOR each penny of spending *because someone has to actually earmark it) and on the other end we would have executives, for example, unable to "sweep" the funds meant for one particular purpose(supposedly) into some other "account" to be used for possibly the opposite reason for why the money was allocated in the first place.
It is OUR MONEY, and it is OUR government. As such, we have the AUTHORITY to command all those operating it HOW, WHEN and even whether OUR money is spent. Folks like Rahm believe that tax money is THEIRS and not only that but that it is ENDLESS, as well as without consequence or accountability.
Make ALL taxpayer money, at ALL levels of government be SPECIFICALLY EARMARKED along with making specific people DIRECTLY accountable FOR that money, both civilly AND CRIMINALLY, and this madness ends with a quickness. Not only would pensions be funded properly, but the money laundering we are witnessing would come to an hasty end.
Gee, why did politicians decry earmarks and trick people into thinking they were a bad thing?
I hate to see you or anyone get screwed on a pension promise but the math does not add up to the obligation being met. Take Illinois as an example. You have about $12BIL in unpaid bills that the state owes money to creditors right now. Bills cannot be paid because there is no budget but when there is, there will be no money to pay $12BIL or $15BIL by June 30th. It is very sad what is happening in this state and city but totally predictable.
Rahm doesn't fund your pension, so I see no reason for CPD to provide any protection for him or his family. Tit for tat.
No reason for you to defend or protect your oppressors.
The pensions are gone. The comments made are from righteously angry people who are desperately clinging to what they were promised.Normal human feeling (denial)and I am also F**ked and not rubbing it in,but lets wake up They stole it or lost it due to being incompetent and the handwriting is on the wall.
What percentage of socialism ideally would you be happy with? That is in effect what our government is doing without asking. Everyday they increase the percentage of your wages they take and redistribute to their voters and campaign contributors. America needs to stand up and say no more welfare for able-bodied Americans and absolutely no welfare unless you can be verified as an American citizen.
Pension? Rock till you drop. Retirement age to be raised to 67.
His investment banker friends aren't complaining, they're still getting their 15-20% commissions for trades,
all the while pension portfolios are getting 2.9%.
Who says Rahm isn't a wise money expert when banks give campaign contributions higher than 2.9% of Rahms salary back to his Super PAC's.
Complain all you want, it will fall on Rahms deaf ears. He'll spend all the money he can and put on his Mr. Rogers sweater just to get re-elected which he doesn't realize is a longshot.He doesn't even want the job he 's a contrary bitch and doesn't like losing is all.
Anonymous said...
Rahm doesn't fund your pension, so I see no reason for CPD to provide any protection for him or his family. Tit for tat.
No reason for you to defend or protect your oppressors.
4/02/2017 01:54:00 PM
If our supervisor assigns us to guard the mayor, that's what we do. Talk is cheap, but that's all it is. Cheap talk.
He also found a million dollars for a fake ID program and the treasurer found $57 million in "extra money" for after school anti violence shit that never lasts. They claim the extra money came from investments.
Inquiring minds would like to know who is in charge or doing investments for the pension plans and why don't the pensions have an extra contribution this year
It's foolish to ask why at least a portion of any of that money should go into he pensions that they stole from right?
Anonymous Anonymous said...
So none of the elected officals and their appointees will be held accountable for this massive financial mess. Bernie Madoff was sent to prison for life for what they said was the largest financial fraud (estimates 12 to 20 billion) from investors. His scheme sounds like peanuts to this. Could we at least get a written reprimand on these politicians! We should start deposing them, even that guy that gets deathly ill when he hears the word deposition! Be frugal with your money, pensions don't look like they will last very long.
4/02/2017 03:07:00 AM
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Whaddya talkin' about??!! The people in this state, county and city LOVE the way things are. That's why the Libune and Slum Times keeps endorsing the incumbents, and why we keep voting for them.
Rauner will be attacked as some kind of right wing loon and voted out. Another Dem will become governor and then we can watch some real downward acceleration.
Just wait. It's coming.
Anyone know some Detroit cops? I do and the two I know, who do not know each other tell a real story of promises made to them, they kept their promise performing their duties risking their lives like Neil Wells and for what? They tell me how those promises were broken by the city. It did not magically happen. But it happened because corrupt people, some of whom did go to jail, others who were incompetent looted and mismanaged that city for years to become a shell of what it used to be. Dishing out goodies, favors, jobs, contracts to their cronies. A dynamic, thriving city of 1.8 mil to an impoverished ghost town in many areas of about 800,000. And don't anyone tell me its coming back. Save that bullshit because Detroit city workers know the truth and so do many citizens which spurred them to leave. And folks, the same thing is happening here. I remember in the late 60's a thriving Chicago with jobs, prosperity and a future with 3.2 mil people to a teeming, crime and poverty infested city of about 2.7 mil on the downward slide.
Develop a personal plan, make it a dream and execute it. There are many places in this country that will provide you with a more economical quality of life with respectful people to live with than this hell hole.
Anonymous Anonymous said...
Rahm doesn't fund your pension, so I see no reason for CPD to provide any protection for him or his family. Tit for tat.
No reason for you to defend or protect your oppressors.
4/02/2017 01:54:00 PM
Ahh but you forget their personal "gold braid" style bullshit they are all 9161 patrolmen getting sergeants pay minimum and some commanders pay and then they get huge pension dip, no special training just clout talked to hauser but like eliminating gold braid bill for pathetic exempts like fire has done years ago crickets!
Hope they take aim at "the gold braid" addition to the pension.
Anonymous said...
There is one single reason our pensions are broke. The Fop and PBPA should be running news adds weekly explaining why. It has nothing to do with the amount we pay in. Those standards are complete good. Even with the market crash . THE CITY HASN'T PAID THEIR PORTION IN OVER 10yrs......POSSIBLY EVEN 15. Without their required payments to gain interest and shore up the red we are doomed. This is the major reason for our terrible percentage.
**************************************************
This is untrue. The pension mess goes way beyond payments by the city, but they have made their required contributions every year. You can look it up at the Pension Board Website. I do not know about the increase contributions that the legislature required starting in 2016, but I believe that has been made also.
____________________________________
You're either clueless, high, or a troll. The city owes hundreds of millions that has been kicked down the road. Why do they owe?????? Because they haven't paid their portion . It's clear you have no idea about the actual situation . Now GFY asshat
How much did Donahue forgive the city?
I'm still praying that Trump or his AG will issue arrest warrants for any public official that continues violating federal law with the Sanctuary city nonsense.
OT - another article on Reason regarding Naloxone:
Maine's Republican Gov. Paul LePage seems to really want opioid users to die. After his state suffered 272 overdose deaths in 2015, the legislature sensibly and humanely passed a law allowing pharmacists to dispense naloxone, a drug that can actually reverse opioid overdoses in process, without a prescription.
In April, LePage vetoed the bill. In his view, he explained, "Naloxone does not truly save lives; it merely extends them until the next overdose." This, he said, "serves only to perpetuate the cycle of addiction." But later the same month, the legislature overrode the veto by vast margins: 29–5 in the Senate and 132–14 in the House.
Naloxone is available from pharmacists without a prescription in 35 states. In recognition of its lifesaving properties—and of America's 200 percent increase in opioid overdose deaths this century—various interest groups, from patients to urban health officials, are urging the Food and Drug Administration to make it available over-the-counter nationally, with no need to deal with a pharmacist at all.
Any idea where the State of IL and/or City of Chicago stand on this issue?
4/02/2017 05:52:00 AM
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who gives a fuck this is a police blog
You're either clueless, high, or a troll. The city owes hundreds of millions that has been kicked down the road. Why do they owe?????? Because they haven't paid their portion . It's clear you have no idea about the actual situation . Now GFY asshat
4/03/2017 12:30:00 AM
To add to the above response, our prior pension legislation that we fought for and finally got passed in 2011 mandated that the city not only pay the state mandated minimum $2.00 for every $1.00 we contribute but finally the city had to comply with the actuaries computed shortfall. Prior to this legislation the city ignored the actuarial computed shortfall but with this legislation the city by law had to make up this shortfall. This is the shortfall was Rahm crying about in the news that the city was broke and could not afford the 450 million dollar payments, remember the last few years when this was all over the news? Well your current FOP president Disability Dean came to the rescue and supported new pension legislation introduced by Rahm that defeated our previous legislation that made the city pay the shortfall. This new legislation almost eliminated the additional actuarial computed shortfall contribution, moved the 90% funded date of 2040 to 2065 and will cost Chicago taxpayers an additional 20 Billion Dollars. So not only did he f*ck Police Officers but also every Chicago resident, who will eventually pay the bill. Thanks Dean.
Mike Lappe said it was all the disabled cops making our pension broke. No way its the citys fault? Mike Lappe said it was all the scamming lazy stupid disabled cops.
"Anonymous Anonymous said...
Mike Lappe said it was all the disabled cops making our pension broke. No way its the citys fault? Mike Lappe said it was all the scamming lazy stupid disabled cops."
Of course it couldn't be the ever growing number of retired exempts collecting 6 figure pensions?
July can't come soon enough until Lappe the City lap dog is long gone, Good Riddance.
President Trump if you or any of your staff members are reading...please stop this midget fuck mayor and all the crook county jagballs from completely destroying our pension and retirees healthcare!! Someone needs to stick a size 12 up Rhambellina's corn hole! On second thought, he would enjoy that! Stay fetal and flee Chiraq!!
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