Chicago Transit Authority Health Plan Could Be Insolvent in 10 Months

We've blogged on this earlier today.But,it's the beginning of a huge trend of greed gone wild in the public sector.Crain's Chicago Business reports:

A retirement plan that pays health benefits to 11,000 Chicago Transit Authority retirees and their dependents is likely to be insolvent in 10 months, according to the plan's actuary.

A report delivered Thursday to the board of the $1.2-billion Retirement Plan for Chicago Transit Authority (CTA) Employees projects that, without a cash infusion or benefit cuts, the health portion of the fund will likely be unable to pay its retirees' health care bills by next January. The larger pension portion of the fund appears to have the resources to pay full benefits until at least 2011.

The health fund's collapse could be postponed or hastened, depending on whether it earns more or less than a projected 9% return on its investments, according to the report by Chicago-based consulting firm Gabriel Roeder Smith & Co. But without a bailout, a collapse or dramatic change in operations appears inevitable.

"We're resource-constrained. We're trying to find a solution," says CTA Chairman Carole Brown. Leaving thousands of retirees without health coverage "is not something we'd want to do."

The Chicago Transit Authority has some of the highest fares in the country.I guess the taxpayers can't afford to let these government workers retire after 25 years no matter how young they are.Mayor Daley obviously runs what looks like the Titanic.