JP Morgan says Illinois needs bankruptcy option

[ATCclears]

JP Morgan Expert: True Debt, Pension, Healthcare Payments Would Consume Half of Illinois Revenue, Bankruptcy Option Needed

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[Stomper]

Let 'em burn down all the way to the blue ground from wence they sprang.....

 

[revjen45]

Come on Stomper. Stop beating around the bush and tell us how you REALLY feel.

And I would like to add they can FOAD. Seeing The Peoples' Republik of Illinois melt down and explode would fill me with Schadenfreude.

 

[Lazyfaire]

JP Morgan Expert: True Debt, Pension, Healthcare Payments Would Consume Half of Illinois Revenue, Bankruptcy Option Needed

Should put the fear of God into many states that have used debt to finance their reckless spending. Everyone knows that debt cannot be pushed endlessly down the road, they just hope they are retired when it comes crashing down.

 

[Diamondback]

Come on Stomper. Stop beating around the bush and tell us how you REALLY feel.

And I would like to add they can FOAD. Seeing The Peoples' Republik of Illinois melt down and explode would fill me with Schadenfreude.

Now if it happened to Commiefornia too? That's a Schadenboner I'd need medical attention for. LOL

 

[Lazyfaire]

But downstate Illinois is like Oregon. The rural parts of the state is whipsawed by the liberal behemoth that is Chicago. Most are hardworking farmers. Doesn't help tho that the last 3-4-5 governors in Illinois have been sentenced to prison. But yeah, you gotta feel pain before you get mad enuf to vote them out.

 

[titsonritz]

Send in the scoops.

 

[DONOTBUGME]

We need a law that state employees can no longer have a pension and must plan their own retirement. The is no reason to offer this to state employees as almost all private businesses have done away with it. I can see offering it to be competitive if the private market offered pensions.

 

[kmk1012]

We need a law that state employees can no longer have a pension and must plan their own retirement. The is no reason to offer this to state employees as almost all private businesses have done away with it. I can see offering it to be competitive if the private market offered pensions.

There are plenty of private sector employers offering a pension. Les Schwab gave me a very good start after the sixteen years I worked there. Now I'm a public employee and the retirement plan is no where near what I took from LS. I'm also contributing to my own retirement as I'm not sure where PERS will end up in this state.

 

[nwslopoke]

You can say moving forward no pensions but a promise or agreement when you signed on has to be kept. I think lawsuits would cost more than the pension. We can save money by not having to clean up Portland every weekend.

 

[po18guy]

No further comment needed.

 

[HB of CJ]

Lots of folks here on this Excellent Forum totally depend upon various States for retirement pensions. In particular California. In that state things are getting truly weird. It is like the loonie toonies have total and complete control of the mental hospital.

If the courts eventually rule allowing States to go broke, when what? Will the horrible excessive spending just continue only worserer because the elected state officials will know they can just sink the new boat then just declare bankruptcy ... over and over again.

Not good

 

[Diamondback]

I'd say attach the Legislators' pensions as "state assets" for purposes of bankruptcy. Better yet, NO elected-office pensions anymore period.

Won't pay for everything, but it'll be a start... and make some of 'em go back to regular jobs to feed themselves.

 

[Caveman Jim]

Should put the fear of God into many states that have used debt to finance their reckless spending. Everyone knows that debt cannot be pushed endlessly down the road, they just hope they are retired when it comes crashing down.

But but but you can't treat government like a business, they're not supposed to make money. They make new laws, rake in new taxes & then spending like a drunken sailors. ( no offense to drunken sailors)...

 

[Lazyfaire]

I've always thought that having someone who has a vested interest in a gov't pay negotiation was wrong. Many of the mid level mgmt people get a raise when the rank/file get one in a union contract. Just who in that mix is looking out for the public? Management should only get bonuses or raises for production, for good management of the budgets they oversee, etc. Except for COLAs.

 

[po18guy]

The following is as I remember - please correct if there are any LEOFF1 members here.

From 1970-1977, Washington State had a law enforcement/firefighter retirement system (LEOFF1) which paid medical and dental for life upon retirement. It paid 60% non-taxable for disability retirements - essentially a full paycheck. Sadly, too many ripped it off and the opinion of a single doctor was sufficient for a disability. It was amazing how many were miraculously cured after retirement. So, in usual government knee-jerk fashion, they gutted it and replaced it with LEOFF2, which gives you nothing but the promise of a paycheck each month. No medical. No dental. Rather than a pension system with investment, it is a "defined benefit." The worst example is a Seattle firefighter who became 100% disabled after only 6 months on the job. Since LEOFF2 is based on service credits, he gets $1.82 monthly. He would have received 60% of his wages tax-free plus medical and dental under the old system

Due to attrition, LEOFF1 eventually built up a reserve of some astronomical figure (multi-millions? one billion?) and the state was drooling to tap into it. They wanted to cash out the remaining retirees (no more paid medical or dental) and divvy the money up, holding back the state's portion of contributions. I think that a lawsuit was the only thing that stopped them.

Pension systems and the temptations of money and power are the downfall of many a state government. And the feds? Best not to even mention them...

 

[revjen45]

NO elected-office pensions anymore period.
Good start. I suggest also
1) No lawyers in the legislature. They are Officers of the Court and thus part of the Judicial Branch. Their presence in the legislature is a violation of separation of powers.
2) Former legislators may not become lobbyists upon leaving their gig in .gov.
3) Yeah, I actually DO hate the DPRK enough to do a happy dance if it eats sewage and falls to the barbarians. Ha! It looks good on them.

 

[Siglvr]

The following is as I remember - please correct if there are any LEOFF1 members here.

From 1970-1977, Washington State had a law enforcement/firefighter retirement system (LEOFF1) which paid medical and dental for life upon retirement. It paid 60% non-taxable for disability retirements - essentially a full paycheck. Sadly, too many ripped it off and the opinion of a single doctor was sufficient for a disability. It was amazing how many were miraculously cured after retirement. So, in usual government knee-jerk fashion, they gutted it and replaced it with LEOFF2, which gives you nothing but the promise of a paycheck each month. No medical. No dental. Rather than a pension system with investment, it is a "defined benefit." The worst example is a Seattle firefighter who became 100% disabled after only 6 months on the job. Since LEOFF2 is based on service credits, he gets $1.82 monthly. He would have received 60% of his wages tax-free plus medical and dental under the old system

Due to attrition, LEOFF1 eventually built up a reserve of some astronomical figure (multi-millions? one billion?) and the state was drooling to tap into it. They wanted to cash out the remaining retirees (no more paid medical or dental) and divvy the money up, holding back the state's portion of contributions. I think that a lawsuit was the only thing that stopped them.

Pension systems and the temptations of money and power are the downfall of many a state government. And the feds? Best not to even mention them...

Are in anyway suggesting that they would not get Federal Social security disability in this situation ?

 

[Lazyfaire]

Pensions in general should just go away. Transition people into 401-Ks and let them add in money of their own. Social Security Disability is a whole different animal.

 

[po18guy]

Are in anyway suggesting that they would not get Federal Social security disability in this situation ?

The firefighter was young, so SSD would have been very little also. I never heard anymore about this, but it happened in the early 90s IIRC.