Chicago Sees Pension Crisis Drawing Near
Promises were made to unions by people who knew they would be long gone when the bills came due. Now the bills are coming due and there is no money, or soon won’t be. But that doesn’t keep the unions from screaming foul.
So what if Chicago is headed over the economic precipice due to lavish pensions which do not exist anywhere in the private sector? You know the sector which pays the taxes for the lavish public sector pensions. So what? I deserve a lifetime pension and healthcare even though I am likely to live to be 80 and I retired at 52. Tough, taxpayers. Pay me.
Good luck with that.
(From The New York Times)
The pension fund for retired Chicago teachers stands at risk of collapse. The city’s four funds for other retired city workers are short by $19.5 billion. At least one of the funds is in peril of running out of money in less than a decade. And starting in 2015, the city will be required by the state to make far larger contributions to the funds, which could leave it hundreds of millions of dollars in the red — as much as it would cost to pay 4,300 police officers to patrol the streets for a year.
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