clifp
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Oct 27, 2006
- Messages
- 7,733
Interesting. Off the top of my head, that still seems pretty generous. Maybe later I'll see if I can dig out the old formulas Mega-Corp used, just for comparison. 'Course, those will be from "the way it was", I guess a 2011 employee at most mega-Corps there gets, what? zippo? Anyone have summary data for this, a quick google got me a lot of unrelated stuff?
-ERD50
The Northwestern study agrees with you.
According to the study both the Chicago and Cook county teacher pension funds are in severe trouble. By 2019 they will run out of money, consume 76% of Chicago's revenue and on a pay as you go system (cause the fund is exhausted) only be able to pay 53% of promised benefits.For example, at the state level, Illinois and New Jersey have contribution requirements which at some point they promised they would meet. But Illinois is now paying them with borrowed money, and New Jerseyis only paying a small fraction of the “required” amount. The city of Chicago has actually received a funding holiday in the context of a recent reform that affected new workers in Illinois state plans....
For example, each household in Chicago owes $42,000 just for the Chicago plans, plus an additional $29,000 for their share of the Illinois state plans, for a total of $71,000 per household, or around $76 billion. On the other hand, it seems infeasible that Chicago, a city with approximately $0.3 billion in annual sales tax revenue and $0.8 billion in annual property tax revenue,can come up with payments for legacy liabilities of this magnitude. It seems more likely that the state of Illinois will end up bailing out Chicago, in which case all Illinois households will end up owing around $42,000. In turn, if that would bankrupt Illinois, then the federal may have to backstop the Illinois
liabilities.