CHICAGO | Politics and Current Events

[left of center]

Originally Posted by jpIllInoIs

The sickest part of the constitutionally baked in COLA and under funding by participants is that the majority of Illinois govt retirees bolt for the border towns or for AZ and FL and TN in retirement. We are literally massively exporting our tax dollars. And retirees are not prohibited from double dipping even within Illinois. A CPS teacher can retire after 20 yrs, say at 42 yo and then go teach at a community college or at NEIU and gain another pension at 62ys. Then move to AZ.

And elected officials use that ploy also, graduating from a municipal council job to a county position to an appointed job gaining pension points all the way.

State cannot declare bankruptcy but can go into default. Short of a CONCON (Constitutional Convention) the state may need to bring default proceeding to the brink with a goal for a Federal mediation intervention where the mediator decision is binding for the unions and state.

Illinois would likely emerge with a more modest obligation than current. And the union members would be responsible for greater contributions during work years and larger copays and less COLA during retirement.

Cities are allowed to declare bankruptcy And likewise could use the process to seek Federal mediation. And Chicago is not the only city in arrears. Not sure what the fall out would be but other cities have defaulted and the righted the sip. NYC? But the mediation process and decision would result in a better situation than current.

In the very tiny, infinitesimal chance there is a new IL constitution is ever written again, I would absolutely love some sort of rule that retired pensioners need to remain in Illinois to receive their full benefits. Moving out of state would mean they would forfeit all/large portion of their pensions. Keeping more of our retirees in the state would help us with our population loss problem, as well as boost the tax base as well.

What are the chances of the state even considering defaulting? Honestly, even with the way things are, not sure if one could justify it. If another massive recession came along, there might be a chance the state might have no other choice. But the vested interests would fight tooth and nail to keep that from happening, and any pol that endorses it would be committing career suicide.