Chicago Unions Divided Over Emanuel’s Move To Gut Pensions

[Sherman A1]

Faced with a debt crisis eerily reminiscent of Detroit’s financial straits, Chicago Mayor Rahm Emanuel now wants to slash retirement benefits for city workers, who have already seen their pension funds erode from decades of mismanagement and delayed payments.

Because the state government has control over Chicago public worker pensions, Emanuel’s first fund-cutting measures have surfaced in the form of proposed legislation. Last week, Emanuel announced a proposal to cut city employee retirement funds; longtime House Speaker Mike Madigan (D-Chicago) then wrote it into Senate Bill 1922.

And on Tuesday, the Illinois legislature passed that bill, which calls for a combination of raised revenue streams and benefit cuts to ensure that the city’s retirement system for municipal employees and laborers—just 35 percent funded today—will be 90 percent funded by 2055. The proposal would affect the pensions of 56,000 city workers affiliated with 31 different unions.

Despite the hit to their members’ pensions, 28 out of those 31 unions support the bill.

http://inthesetimes.com/working/entry/16551/chicago_unions_divided_over_emanuels_move_to_gut_pensions

[yeoman6987]

1. I just don't see how they can do this

It is one thing to change the pension of folks starting "tomorrow", but for people already retired and those that are already in the system, it does not seem like they can do this. Obviously they are but what a rip off. I guess nobody is safe.

[Sherman A1]

2. It is indeed a rip-off

and a true breech of trust in my opinion. You work for years, make retirement plans along the way based upon the deal you were told would exist and in far too many cases poof it's gone. I consider this to be nothing more than theft by the employer whoever that might be, just the same as wage theft as the pension deal was part of the compensation package under the agreement between you and your employer. I think companies who do this or governments should be sued into the dirt, but that's just my opinion.

[whathehell]

3. +100 n/t

[LiberalFighter]

4. This article confirms my thoughts about this issue.

One of those is to ask whether those effected will be receiving anything from Social Security and the other is how much both parties are contributing.

In this case, as in many public sector entities the employees will not receive any Social Security benefits. Just like the public workers in Detroit.

The mess in Chicago was created by the city of Chicago's elected officials. Consider that currently the teachers pay into their pension at the rate of 9.4% while the city only pays .58%. Yet through inept leadership the city has not funded the pension plan fully in the last 10 years.

At the least Madigan and Rahm both need to go.

http://www.ctunet.com/legislative/protect-our-pensions/questions-answers-about-the-chicago-teachers-pension-fund

[Sherman A1]

5. Absolutely!

It's the continuing saga of screwing the working people whenever they can.