Tuesday, May 01, 2012

Generous rules govern Chicago aldermen's pensions

The Chicago Tribune reports:
When Chicago aldermen floated a proposal in 1987 to boost their city pensions dramatically, Mayor Harold Washington's administration dismissed it as an arrogant ploy that lacked even a cursory cost analysis.

Three years later, the proposal still didn't have a price tag. But records show that the new mayor,Richard M. Daley, helped push it through the state Legislature anyway.

Now a Tribune/WGN-TV investigation reveals how much those lucrative pensions could end up costing taxpayers.

An analysis of pension fund documents for 21 aldermen who retired under the plan shows they are in line to receive nearly $58 million during their expected lifetimes, though contributions and assumed investment returns are predicted to cover just $19 million, or a third of that sum.

Great moments of the Cook County Democrat party! Barack Obama is looking to help these comrades by calling government spending of all types: "investments". Just a reminder.