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| Is CHIMMY's pension in danger? (1268871) | |
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Is CHIMMY's pension in danger? |
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Posted by LuchAAA on Sun Mar 1 01:40:56 2015 Is CHIMMY's pension in danger? |
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Re: Is CHIMMY's pension in danger? |
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Posted by chicagomotorman on Sun Mar 1 01:50:36 2015, in response to Is CHIMMY's pension in danger?, posted by LuchAAA on Sun Mar 1 01:40:56 2015. No. I'll give details tomorrow |
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Re: Is CHIMMY's pension in danger? |
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Posted by AlM on Sun Mar 1 02:17:29 2015, in response to Is CHIMMY's pension in danger?, posted by LuchAAA on Sun Mar 1 01:40:56 2015. No. Whatever it costs, Illinois taxpayers are legally obligated to pay it. |
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Re: Is CHIMMY's pension in danger? |
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Posted by SelkirkTMO on Sun Mar 1 02:24:36 2015, in response to Re: Is CHIMMY's pension in danger?, posted by AlM on Sun Mar 1 02:17:29 2015. Yep, but with our fine GOP friends, they weren't happy with class wars and race wars, now they're off on age wars. The kids are going to take it up the ass. And they'll STILL vote for them.Pension tiers have been happening for a while now, now it's going to get real serious. The pension benefits offset shitty wages. They intend to keep THOSE. :( |
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Re: Is CHIMMY's pension in danger? |
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Posted by Olog-hai on Sun Mar 1 02:43:27 2015, in response to Is CHIMMY's pension in danger?, posted by LuchAAA on Sun Mar 1 01:40:56 2015. You mean from the liberals who have shut out any sensible way of conducting business and government in Chicago and IL? |
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Re: Is CHIMMY's pension in danger? |
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Posted by SLRT on Sun Mar 1 07:50:07 2015, in response to Re: Is CHIMMY's pension in danger?, posted by SelkirkTMO on Sun Mar 1 02:24:36 2015. Prince Andrew is a Republican? Can you say "Tier 6" even though the state comptroller said there was no need? |
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Re: Is CHIMMY's pension in danger? |
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Posted by ChicagoMotorman on Sun Mar 1 12:30:48 2015, in response to Is CHIMMY's pension in danger?, posted by LuchAAA on Sun Mar 1 01:40:56 2015. The answer is no. My pension is not in trouble. The CTA pension is totally different from Iliinois, City of Chicago, or Cook County municipal workers. Current CTA employees contribute a total of 14% of their wages toward their pension. 11% of that goes towards the actual pension, and 3% towards retiree heathcare trust. CTAs pension is one of the strongest municipal pensions in the country. |
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Re: Is CHIMMY's pension in danger? |
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Posted by AlM on Sun Mar 1 14:02:57 2015, in response to Re: Is CHIMMY's pension in danger?, posted by ChicagoMotorman on Sun Mar 1 12:30:48 2015. http://www.ctaretirement.org/retirement-plan/reports/2014-actuarial-valuation.pdfAs of 1/1/2014, the CTA pension plan had $1.893 billion in assets. The present value of its liabilities already incurred, using a discount rate of 8.25%, was $3.106 billion. If this were a private company plan, it would have needed to discount liabilities at a rate of about 5.30%, and the present value of the exact same liabilities would have been more than $4 billion. So assets are about half of true liabilities. However, CMM's pension is not at risk. As he says, current employees are contributing 10.125% of pay and the employer is contributing 14.25% of pay. Even under the assumption of 8.25% discount rate, the appropriate rate of contribution to bring the plan to fully funded status in 30 years would be 30% of pay, not 24%. CMM is not going to lose any pension benefits. But taxpayers and remaining employees are paying through the nose to make that happen. And they will have to pay even more in future years. |
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Re: Is CHIMMY's pension in danger? |
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Posted by ChicagoMotorman on Sun Mar 1 14:19:24 2015, in response to Re: Is CHIMMY's pension in danger?, posted by AlM on Sun Mar 1 14:02:57 2015. Thank you for doing research. |
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Re: Is CHIMMY's pension in danger? |
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Posted by AlM on Sun Mar 1 14:22:57 2015, in response to Re: Is CHIMMY's pension in danger?, posted by ChicagoMotorman on Sun Mar 1 14:19:24 2015. You are very welcome.My fee would be to ask you every once in a while to express gratitude to the people of Chicago for helping to pay for your pension. :) |
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Re: Is CHIMMY's pension in danger? |
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Posted by ChicagoMotorman on Sun Mar 1 14:24:24 2015, in response to Re: Is CHIMMY's pension in danger?, posted by AlM on Sun Mar 1 14:22:57 2015. Well have a beer together next time I'm in New York. |
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Re: Is CHIMMY's pension in danger? |
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Posted by SMAZ on Sun Mar 1 14:26:32 2015, in response to Re: Is CHIMMY's pension in danger?, posted by AlM on Sun Mar 1 14:22:57 2015. It would also help that he express some gratitude to the muni bond holders who make low interest rates possible and thus the burden on those Chicago taxpayers all the more sustainable. |
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Re: Is CHIMMY's pension in danger? |
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Posted by AlM on Sun Mar 1 14:35:30 2015, in response to Re: Is CHIMMY's pension in danger?, posted by SMAZ on Sun Mar 1 14:26:32 2015. True, but that's not only somewhat related to CTA pensions. The CTA's purchase of bonds to pay money into the pension is just borrowing from one creditor so that you don't owe another creditor as much money. If rates had been much higher, they just wouldn't have done it. It's totally gimmicky, but since they didn't invest the money in junk bonds that then defaulted it doesn't seem to have made any real difference.The real source of funds to make everyone's pension whole is going to be the taxpayer. |
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Re: Is CHIMMY's pension in danger? |
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Posted by SMAZ on Sun Mar 1 14:48:43 2015, in response to Re: Is CHIMMY's pension in danger?, posted by AlM on Sun Mar 1 14:35:30 2015. yes |
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Re: Is CHIMMY's pension in danger? |
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Posted by SLRT on Sun Mar 1 15:26:25 2015, in response to Re: Is CHIMMY's pension in danger?, posted by AlM on Sun Mar 1 14:35:30 2015. So you don't ever consider that public pensions are deferred compensation for services provided to the municipality and its citizens? |
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Re: Is CHIMMY's pension in danger? |
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Posted by AlM on Sun Mar 1 15:45:57 2015, in response to Re: Is CHIMMY's pension in danger?, posted by SLRT on Sun Mar 1 15:26:25 2015. Absolutely, that's what they are.The problem is that politicians and labor leaders have concurred in misrepresenting (and I don't mean overstating) the cost of that deferred compensation. It is because of that misrepresentation that future taxpayers will be paying through the nose. And this is the difference compared to social security. Historical SSA projections have been as accurate as could be expected given the uncertainty of future demographic and financial trends. |
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Re: Is CHIMMY's pension in danger? |
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Posted by SLRT on Sun Mar 1 16:49:30 2015, in response to Re: Is CHIMMY's pension in danger?, posted by AlM on Sun Mar 1 15:45:57 2015. I am uncomfortable with Social Security as an example of a sound plan. Why? Because it counts on certain political decisions.I'll put it this way. I get a small industrial pension. Because or factors mostly beyond their control (mostly the severe shrinkage of the industry) the pension plan has been in trouble for years. But the plan is under legal supervision (you would know more about that than I) so I know what the worst would be. If not a single dollar went into the plan tomorrow, I would lose a third of my pension (the underfunded part) but I would continue to get that pension for the rest of my life. If Congress had to stop requiring people to fund SS through their mandatory contributions, how long would the money last? |
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Re: Is CHIMMY's pension in danger? |
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Posted by SelkirkTMO on Sun Mar 1 17:18:38 2015, in response to Re: Is CHIMMY's pension in danger?, posted by SLRT on Sun Mar 1 07:50:07 2015. He definitely is playing one on teevee so that he can run for President. As Olog will happily point out, democrat or republican isn't a political party anymore. Those are interchangeable. It's a mindset and Prince Andrew wants to be a republican. |
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Re: Is CHIMMY's pension in danger? |
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Posted by SMAZ on Sun Mar 1 17:44:13 2015, in response to Re: Is CHIMMY's pension in danger?, posted by SLRT on Sun Mar 1 16:49:30 2015. If Congress had to stop requiring people to fund SS through their mandatory contributions, how long would the money last?You mean the Bush Plan? |
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Re: Is CHIMMY's pension in danger? |
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Posted by AlM on Sun Mar 1 18:30:17 2015, in response to Re: Is CHIMMY's pension in danger?, posted by SLRT on Sun Mar 1 16:49:30 2015. Everything is political. The safety of your private pension is political too. Have you heard about the multiemployer pension reform act of 2014? It suddenly allowed certain multiemployer plans to cut retiree benefits in order to maybe stay solvent. |
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Re: Is CHIMMY's pension in danger? |
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Posted by SLRT on Sun Mar 1 21:40:15 2015, in response to Re: Is CHIMMY's pension in danger?, posted by SMAZ on Sun Mar 1 17:44:13 2015. No. |
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