Another Billion Here
- Less aggressive investment return estimates have carved an additional $1 billion hole in the severely underfunded pension system for Chicago teachers, reviving questions about how a retirement plan for tens of thousands of public workers can survive without additional money from taxpayers.
Consultants for the Chicago Teachers’ Pension Fund now conclude the system is about $11 billion in the red and faces an even steeper climb to comply with a state law that requires it to be 90 percent funded by 2059, financial documents show.
Schools and households won’t feel the worst pain of the impending pension payment spike for several years. Experts say that’s because the state-mandated payment plan pushes an enormous and growing burden onto future taxpayers.
So you still have a few years to escape before the bill comes due. And that last line about "future taxpayers"? There aren't going to be any left soon.
Labels: money questions
posted by SCC at 12:01 AM
54 Comments:
Blame Daley and the 50 aldermen PERIOD!
He made a fool of this city and walked away laughing 😀
Fucked up all the way to 2059
Typical democRATic thievery. Divert the city ‘s payments to line their own pockets, kick the can a decade or two down the road, retire from office, claim illness so you don’t have to answer any questions, then die leaving a trust fund to the family.
only ones left will be illegals and link cards
The only way out of this without too much bloodshed is inflation.
Towards the end you will be fortunate if your monthly pension covers your monthly food consumption.
When Paul Vallas left, the teacher's pensions were funded at over 100% and CPS had a budget surplus of 1 BILLION DOLLARS, and a Triple A credit rating. Since Rahm has been in office, CPS' bond rating has been downgraded 12 times. Recently, Rahm bragged that they had been upgraded two notches, but that was by a group outside of the Big 3 (which Rahm gave up on because they had downgraded so severely on his watch, kind of like COPA hiring outside investigators hoping they would get what they want, or Forrest Claypool going through Lawyers until he found one who agreed that there was no ethics violation for his preferred person at CPS).
It's not all the teachers fault. Rahm has succeeded in vilifying both teachers and cops alike. Check it out!
A cop supporting teacher
>said in The Lost In Space Robot Voice<
"DANGER TAXPAYER! DANGER! ESCAPE ILLINOIS NOW WHILE YOU CAN! CPS Pensions are on the fritz... DANGER!"
Run Away!
Rahm could not care any less about our pensions.
He has no intention of truly funding them. He feels they’re too lavish and we don’t deserve them.
He’s got his $14 Million dollar gift wrapped windfall that fell into his lap after leaving the White House years back... so he and his family are all good. Us peons...... not so much.
Just close the pension funds to new teachers and give them 401k and social security like in private industry a.k.a. a real job!
As for the rest, the current teachers should pay 11% into their pension funds just like police officers do!
I have no sympathy for teachers, when I have to pay more into my pension than they ever do!
They shoulda invested in bitcoin
With so many financial issues with CPS' pension funds, why is it that their financial wizards have been spending a week in South Africa the last couple of years. They just returned from Africa two weeks ago. The public needs to know how that benefits the pension fund.
Outta here in eight months, can't wait!
Watch the 5th floor distance themselves on this one. They will lay blame on his hand picked CPS board and blame them for the tax increases. Anyone close get the hell out of dodge. More and more are leaving the city, the county and the state.
I myself am trying to do a lateral transfer in a red state where their pension system is 100% private where local politicians nor government can touch it. Praying praying praying I get this. Be safe All
Two years, seven months. Not looking back when it comes.
"less aggressive" or "more realistic"? I suspect the latter. Had a chance to move to Chicago 15 year's ago (my wife's extended family lives there). Made the choice for central Indiana. Glad I did. Good luck to everyone trapped there on a successful escape.
I just drove by 65th St. And Neva there is a $100 million plus brand new school being built there the mayor just waste money because over 54 schools he closed is building new ones the family and for friends program is going on on a baby all the money and kickbacks nothing like using other peoples money for your election
Why not build a new stadium for DePaul? Perhaps new lights for the entire city. The last election was proof how dumb the voters of Chicago are.
All Democrats flunked Econ 101 anyway.
Now, kees me you fool!!!!
Teachers are going to have to take a hit. Expect portions or all of future raises will have to go to their pension contributions. That will stop the growth of the debt but will not decrease it. Don't suppose we know any retirees that had their benefits reduced after they retired do we?
Nothing a regular seance couldn't cure. One say every three or four months.
Its what they do in Haiti, Zimbabwe and South Africa. Get those funding assumptions up to where they should be.
The Daley-Emanuel Democratic death spiral continues.
Anonymous Anonymous said...
Just close the pension funds to new teachers and give them 401k and social security like in private industry a.k.a. a real job!
As for the rest, the current teachers should pay 11% into their pension funds just like police officers do!
I have no sympathy for teachers, when I have to pay more into my pension than they ever do!
3/27/2018 03:08:00 AM
Hey asshat, the teachers pension tab was picked up during negotiations in lieu of a raise, much like some perks we get, (uniform, duty availability). As for teacher not being a “real job” you have to be fucking kidding me right?
“Future Taxpayers”
I don’t think so. Illinois and Chicago in particular has the most people leaving, for the 3rd straight year.
As a former citizen of Chicago (Lincoln Park) who moved to Carmel, IN five years ago, I saw the handwriting on the wall. The property taxes on my home increased to the point were it was near what my mortgage payment was. At that time, I was 52 and self-employed and realized that I would not have enough savings to retire on if I continued to "contribute" to all of the CPS and Cook County pension BS. I am glad I made the move and got out. That is one thing Democratic politicians can't control is you moving out.
FYI, Forbes magazine last year had an excellent article about not retiring in "blue" states like Illinois, California, New York, Massachusetts, New Jersey or Connecticut. The article stated that the drain of private employers from these states as businesses move to Indiana, Texas, Flordia, Wisconsin in the future would place a heavy burden on remaining retirees who would be forced to pay for increasing government pensions on a fixed income. The article stated that Illinois has a government pension debt of $70,000+ per private employee while Indiana was $11,500 and Wisconsin was even lower at $10,000. Private employee numbers were used instead of total employee numbers because public employee's like Teachers do not contribue to gross domestic product (they don't make or provide a service on anything).
The lesson from the article is be forewarned and move before your retirement is placed in jeopardy.
The only way out of this without too much bloodshed is inflation.
Towards the end you will be fortunate if your monthly pension covers your monthly food consumption.
3/27/2018 12:41:00 AM
There is no such thing as too much bloodshed.
Towards the end, you'll be fortunate if you aren't compelled to stick around for it.
My mutual funds went up over time.
What are they investing in, for God's sake?
Oh, maybe they're on FB or Twitter all day.
Certainly, the kids can march all they want, but they can't read! UN-REAL!
NOT ILLINOIS. NOT LAW.
Anonymous Anonymous said...
They shoulda invested in bitcoin
3/27/2018 03:35:00 AM
They did. Then when bitcoin paid off they paid back their “loan” from the pension fund with 1% interest
and pocketed the rest.
FUNNY HOW ALL THIS COMES OUT AFTER AN ELECTION. Keep voting for the democratic they like spending your money!
Bernie Madoff is in the joint for bilking his clients out of millions. How come the FBI or bookeepers with guns haven't pinched Rahm?
“to comply with state law” people read that like it means something. If it’s not working out for them they just change the law. Duh!!!
They will kick the can down the road...until there’s no longer a can. Which will occur soon
Teachers pensions are also compounded which means their pensions double in about 12 years. Also I think they pay 3% in to fund.
Teachers are smart...especially when it comes time to manage the checkbook that Rahm keeps bailing out.
Don’t expect any CPS deficit pension money to come from their Contract.
That 2% is solid and set in stone under The Rahm Pander Plan.
We gonna need a soda pop tax again.
Watch that 1st Installment Kaegi Tax Bill (formerly the Berrios Bump) in March 2019 to skyrocket ...again.
Did you notice on the back of your last water bill Rahm had to mention the increases “due to make certain mandated pension payments” ?
Time to start ALL building owners formerly exempt from payment to pay their fair share into the pension funds and get CPS to belly up too.
Aldermen asleep at the wheel?
Maybe the entire budgets of the city, county and state should be reviewed to see just who is getting paid what and what benefits! These politicians are paying back their patronage workers and big money backers with "tax money" year in and year out. It's gotten so flagrant pensions are insolvent, benefits earned are being severely diminished and some completely lost, while those who never worked are granted insurance benefits and pensions that the poor bastards who actually busted their ass for 20+ years could only dream about!
democ"RAT"ic leadership at its finest.... Every one is bankrupt!
Anonymous Anonymous said...
Just close the pension funds to new teachers and give them 401k and social security like in private industry a.k.a. a real job!
As for the rest, the current teachers should pay 11% into their pension funds just like police officers do!
I have no sympathy for teachers, when I have to pay more into my pension than they ever do!
Where do you come up with this stuff about police paying 11% into their pension?
Also that’s a great idea about closing their pension funds to new teachers and going with the 401k. They do that who do you think is next in line for the 401k
Not to mention if they do that who is going to pay for the current and future retirees in there is no new hires to contribute
You have some great ideas
Anybody expecting a government pension will be severely disappointed.
The numbers don't lie. Politicians do.
Rahm sitting with wall street investor as the city loses billions and billions:
https://www.youtube.com/watch?v=idOQXlHVrQE
Rahm learned well, shorting pension funds, not paying the bills just adding more and more! thinking about the mayors race as rahm panders to the hispanics like that bullshit Puerto Rico with faln friend little luis, he went there for zero reason except for to get more votes "look at me watch my fake feelings" as he gives away Chicago taxpayers money in a gift box! Next look at the master rahm catering now using his girl city clerk anna who takes the marching orders to keep that appointed position which so far has done nothing in the city clerks office! Now we have that fake illegal criminal ID card coming on board to give discounts and free items,and as a "bonus" they can use it to vote rahm in again! Nice move! But wait as this happens Chuy Garcia is wetting his beak, noticing how strong the hispanics like him are getting,and right now fielding hispanic candidates to be the first hispanice mayor of chiraq! Look what Chuy did to Dan Burke eddies little brother who held the power over 30 years! Chuy puts in a young Hispanic kid barely 26 years old,no experience in politics at all and the kid wins it!
Why did this happen? 2 good reasons the Hispanics are gaining population (legal and illegal but with id card that is moot with rahm), and Dan Burke was not responsive to the few "white ethnics" remaining in the area of his control! Not just Hispanics voted for this young man nope many white ethnics who are tired of being disregarded did the same! Burke and many are not campaigning for us they are sending out sickening literature running against Trump! People want to know what you will be doing for your constituents and your plans not this anti_trump agenda, the young kid focused on problems in the areas not focused on trump and he won!
God bless the police!
If it's true that the teachers don't pay into their own retirement system, maybe it's time to start. Nothing is free.
Maybe the teachers can reach out to blm for investment advice and monetary contributions seeing that they're so tight. I wonder if Karen Lewis has entertained this option.
When Paul Vallas left, the teacher's pensions were funded at over 100% and CPS had a budget surplus of 1 BILLION DOLLARS, and a Triple A credit rating. Since Rahm has been in office, CPS' bond rating has been downgraded 12 times. Recently, Rahm bragged that they had been upgraded two notches, but that was by a group outside of the Big 3 (which Rahm gave up on because they had downgraded so severely on his watch, kind of like COPA hiring outside investigators hoping they would get what they want, or Forrest Claypool going through Lawyers until he found one who agreed that there was no ethics violation for his preferred person at CPS).
It's not all the teachers fault. Rahm has succeeded in vilifying both teachers and cops alike. Check it out!
CPS had a billion dollar surplus? They’ve been in the red for decades. If there was a surplus, it would’ve been looted long before it ever got that big.
A cop supporting teacher
Well, seeing that this boondoggle has happened while democrats were at the helm, maybe all the money democrats have squirreled away should be confiscated to make things right again. I'm sure there is more than enough to fix things.
J.J.
Fill the pension Gap?
More pension contributions from teachers?
Can’t do that...
They’re saving their money to buy guns, you know-to arm themselves in schools.
Something Catholic school nuns would never, ever need...!
Balls of steel, those nuns....
2059? in 2030 you can get a 30 year mortgage and a year before it's paid off, it'll be 2059.
that timeframe is just like the global warming/cooling predictions
Thank You, 12:41 am.! I am a CPS teacher that is a huge supporter of CPD.
Is that the same pension fund that was 115% funded when Daley got his thieving little hands on it? Thought so.
McCarthy has Rahm dead to rights on wiretaps that will destroy him and they are uglier than Pritzker.
Thank god I'm not tied to this city. As soon as JB slithers into the Governor's mansion, we're really fucked.
Sky high return expectations can come back to kick you in the face down the line. Does the fund also invest based on the liberal agenda like they want to do in California? Dumping oil and gun stocks must be the first item on the agenda. The goal is no longer to create returns but to advance the liberal agenda. I hope pensioners are happy they may be funding a liberal future.
maybe CTU can make their own 9% contribution instead of the taxpayer shouldering 16 of the 18 pct contribution.
To the person fleeing the city for Carmel in. Good choice affordable housing taxes and nice people. Voted one to top places to live in US. Indy is a great city where you don't need an interpreter to conduct everyday life. Also very easy to get concealed carry permit. Only three hours from Chicago in case you need a good pizza fix, also a Portillo just opened one suburb over from Carmel and another one being built on south side Indy.
Less aggressive investment return estimates
/////
Well what the Fuck have they been investing in exactly? A monkey can make money investing since Trump has been elected
Anonymous Anonymous said...
If it's true that the teachers don't pay into their own retirement system, maybe it's time to start. Nothing is free.
Teachers pay 2%, CPS pays the other 7% of the required 9% contribution. Guess this happened a few years back when the teachers were given this benefit instead of a pay raise. Was a great deal for them. What would they have gotten a 2 to 4 % raise at the most
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