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Illinois Public Pension bail out
#1
Looks like Illinois is the first state to ask for the Federal Government to bail out their pensions.

https://www.newsmax.com/finance/streetta...id/965457/

"....An article in the Wall Street Journal shed light on the first U.S. state to request bailout funds:

Illinois has requested a federal bailout of its struggling public-employee retirement plans, which had unfunded liabilities topping $469 billion in 2018, according to a Federal Reserve study.

Specifically, according to Chicago’s Daily Herald, Illinois Senate President Dan Harmon requested $44 billion in bailout cash.

The problems in the state’s public pension fund are well known, and the fact that Harmon requested emergency funds should only serve to make those problems more obvious.

The Daily Herald lamented, “Despite pumping more and more into the pension systems each year, Illinois continues to slide deeper into debt.” And, the article goes on, Illinois may not be able to get financial help from the private sector any longer:

Excessive debt driven by the pension crisis has left Illinois with the lowest credit rating in the nation, just one notch above junk status. That means private investors may not be willing to lend Illinois money much longer.

It would seem that asking taxpayers who are already concerned with their own situation for more money would be a bad idea. But that’s what Illinois is doing...."
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#2
The problem with a federal bailout is that it supports the unsustainable model of civil servants voting to award themselves benefits that are not affordable in the long run: The rope has to snap taught some time or there is no end to this.
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#3
(05-02-2020, 08:47 PM)andrew_o Wrote: The problem with a federal bailout is that it supports the unsustainable model of civil servants voting to award themselves benefits that are not affordable in the long run: The rope has to snap taught some time or there is no end to this.

The point where it snaps may be near.

I wonder if retired civil servants will be able to live on what some Social Security pensioners do? 

Some while back there was a poster on the board (in Escanaba I believe) who was living on $640 month.
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#4
(05-03-2020, 02:11 PM)aqua Wrote:
(05-02-2020, 08:47 PM)andrew_o Wrote: The problem with a federal bailout is that it supports the unsustainable model of civil servants voting to award themselves benefits that are not affordable in the long run: The rope has to snap taught some time or there is no end to this.

The point where it snaps may be near.

I wonder if retired civil servants will be able to live on what some Social Security pensioners do? 

Some while back there was a poster on the board (in Escanaba I believe) who was living on $640 month.

I don't know if that was me or not. Up to about seven years ago, I was living on about $10K Canadian a year (that was not my income, that was my expenses). It's certainly doable, but most would not like it, and it requires some flexibility on living arrangements.
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#5
Same here Brunt

I'm retired with a state pension which isn't a lot, but I have significant savings & investments. So I went into retirement not really knowing if I had sufficient behind me to retire without a struggle.

The answer is most certainly YES! It seems I live a low profile life and can just about get away on the state pension alone. Of course it helps that I own my own house and have pretty much all the things I need.
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#6
(05-03-2020, 08:26 PM)brunt Wrote:
(05-03-2020, 02:11 PM)aqua Wrote:
(05-02-2020, 08:47 PM)andrew_o Wrote: The problem with a federal bailout is that it supports the unsustainable model of civil servants voting to award themselves benefits that are not affordable in the long run: The rope has to snap taught some time or there is no end to this.

The point where it snaps may be near.

I wonder if retired civil servants will be able to live on what some Social Security pensioners do? 

Some while back there was a poster on the board (in Escanaba I believe) who was living on $640 month.

I don't know if that was me or not. Up to about seven years ago, I was living on about $10K Canadian a year (that was not my income, that was my expenses). It's certainly doable, but most would not like it, and it requires some flexibility on living arrangements.

I don't believe it was you.  Unless you were/are an evironmentalist ? ?
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