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Respected Contributor
Posts: 3,596
Registered: ‎03-10-2010

Underfunded pension again, but these folks have a plan to fix it.

An "Audible Gasp" Was Heard When The Chicago Fed Unveiled Its "Solution" To The Pension Problem

 

pension1.JPG

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Honored Contributor
Posts: 18,032
Registered: ‎08-08-2010

Re: Underfunded pension again, but these folks have a plan to fix it.

That's IL and their politics for you. 

 

I guess people aren't understanding that the money for pensions and government entitlements is going to have to come from somewhere, and they are going to take it from wherever they think they can get it, any way they think they can take it. 

 

Look out, it's going to be a bumpy ride.

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Posts: 17,296
Registered: ‎07-03-2013

Re: Underfunded pension again, but these folks have a plan to fix it.

They need to go back to the drawing board.  

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Posts: 27,187
Registered: ‎03-12-2010

Re: Underfunded pension again, but these folks have a plan to fix it.

I've never understood much about pensions.  Are they a kind of savings account (sorry to show my stupidity).

 

I worked for the Federal government for 7 years before I quit to have my babies and be a stay at home mom.  Back then the government didn't take out Social Security (crazy, I think).  They had their own retirement program.

 

When I quit I withdrew it (not much) and used it for a down payment on a home.

 

My late husband was in the Army for a few years when we were married, finished his time and eventually started his own business.

 

Anyway, my point is I've never been involved in pensions or known anything about them.

 

Were it not for my late husband's social security I always say I'd be working at Walmart to live.  He was very successful and had a company manage his retirement fund, etc, so I don't have to worry about money, thank goodness.

 

But I've talked here about living my with older sister and her 4 children (just she and I caring for them).  She worked 2 jobs (back in the 60's).  I went to high school and cared for them.  There were times when we wondered what we'd eat.

 

That never leaves you.  Because of that let's just say I'm generous to help other's.  Not because I'm so good, but because GOD gave me a memory.  

 

A memory is a wonderful thing to have.  I believe it makes us who or what we are.  Without a memory we wouldn't be able to do what we need to do.

 

Finally, my point...(I know, it takes forever, doesn't it).  My little brain will never understand why (if I understand any of this) people can't do the right thing by other's.  

 

That's what this seems like.  I've read several items here where people have been cheated out of their retirement funds, etc.

 

I talk to people in Dr's offices and other places who tell me how difficult it is to try (key word .... try) to live on Social Security.  I used to think ("how short-sighted are these people that they believed they could live on such a small amount").

 

Then someone was gracious enough to explain to me that way back the amount they'd get was adequate (but no longer .... due to inflation).  This person explained that these people believed the government was telling them the truth that they could easily live on this money and not to worry.  That's how I understood what they were saying.

 

Now whether or not you believe that these people were naive or ..... well...not that bright...  If you believe they should have prepared better and saved more...that's your prerogative.  

 

However, it seems to me what looks like is happening with some of these pension problems is a matrix of several problems.  People are living longer (money doesn't go as far when people live longer).  Money doesn't buy as much as it used to, and so on and on.

 

I see it (and I'm sure I'm probably wrong, as usual) that those who manage these 'funds' do a terrible job.  Perhaps they don't have a memory of what it is to worry about where are you going to get something to eat.  Perhaps they are just plain downright dishonest.

 

I don't know.  I guess I'll never understand.  As usual, it's the Indians who suffer.  Just another case of what I call "too many Chiefs and not enough Indians.  In other words too many people at the top making stupid decisions and it's the people who do the work that suffer.

 

I have to admit that I couldn't read the writing in the OP's post but it looks like the money was mis-managed.  If I misunderstood, I apologize.

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Posts: 2,994
Registered: ‎03-15-2010

Re: Underfunded pension again, but these folks have a plan to fix it.

Let me guess they did nothing to fix the problem and continue to offer a pension plan for current employees that is STILL not funded.

Maybe they should just raise the IL tax rate to 50% now.

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Posts: 1,599
Registered: ‎03-10-2010

Re: Underfunded pension again, but these folks have a plan to fix it.

Ours is about 3.4 which means that part of our retirement plan will have to mean selling our home and moving someplace with lower property taxes. I notice a lot of homes in my neighborhood are in foreclosure.
Do the math.
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Posts: 2,994
Registered: ‎03-15-2010

Re: Underfunded pension again, but these folks have a plan to fix it.


@MarieIG wrote:
Ours is about 3.4 which means that part of our retirement plan will have to mean selling our home and moving someplace with lower property taxes. I notice a lot of homes in my neighborhood are in foreclosure.

This may be easier said than done as the situation in Chicago is playing out almost everywhere.  Fabulous pensions to state workers and teachers with no way to fund them - in part due to medical costs skyrocketing.

 

We are "lucky" in that our property taxes have a low % but the only reason for that is the home prices are extremely high with lots of  multi-million $ homes in the area so there are plenty of pockets to reach into.

Our % maybe considered low but we still pay almost $5000 a year just for school taxes and the pension is still crying poor.  (??!?!?)

So in exchange for reasonable taxes we pay very high housing prices.

 

As we are also looking at retirement this seems to be the formula-- an inverse relationship to home $ and real estate tax %  (ugghhh)

 

An adorable and once VERY desirable community near us is now going through mass exodus due to the township ignoring the infrastructure, now it has to make repairs taxes soared to cover the cost.  Many people esp the younger families and seniors left they could not afford the taxes and due to the taxes the home values tanked.  For people with mortgages they were underwater and many just walked away....

Shame for a once recently prized "high society" community.

 

We know several couples who have retired out of the country.

 

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Posts: 10,448
Registered: ‎03-10-2010

Re: Underfunded pension again, but these folks have a plan to fix it.

@mememe

 

Curious, y the tiny font?

 

 

hn

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Posts: 4,477
Registered: ‎03-11-2010

Re: Underfunded pension again, but these folks have a plan to fix it.

[ Edited ]

Our populaion is aging. There are not enough young workers to pay for us senior citizens, who are living longer. Years ago, contracts were signed based on the premise that 65 was ancient. Now some look at it as middle age. Politicians try to convince us that they can lower our taxes while promising no diminution in goodies. An elementary school student could explain why their arithmetic is faulty. And speaking of school kids, how much longer can we cut funding for school supplies, books, and teachers before our children and our country fall so far behind that there’ll be no catching up? Just asking.

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Posts: 1,800
Registered: ‎03-10-2010

Re: Underfunded pension again, but these folks have a plan to fix it.


@mominohio wrote:

That's IL and their politics for you. 

 

I guess people aren't understanding that the money for pensions and government entitlements is going to have to come from somewhere, and they are going to take it from wherever they think they can get it, any way they think they can take it. 

 

Look out, it's going to be a bumpy ride.


Just wait until the govt decides to tax "wealth" e.g. savings accounts, 401K's, etc. I think I'll start putting my money in the mattress!