Friday, February 10, 2017

Out of sight,out of mind

CHICAGO, Dec. 5, 2016 /PRNewswire-USNewswire/ -- About one-fourth of governments with pension funds across Cook County have more retirees collecting from the funds than workers paying into them, Cook County Treasurer Maria Pappas said today.
 Cook County's major taxing districts annually report their key financial data to the Treasurer's Office under the county's Debt Disclosure Ordinance, authored by Pappas.
 The Treasurer said the DDO figures show that 130 of the 549 taxing districts report more retirees collect pensions than active workers contribute to the funds – presumably for a future in which they begin collecting their own pensions. 
 "More retirees collecting than workers contributing presents a funding challenge to local governments struggling to keep pension funds solvent," Pappas said. In remarks prepared for an address to the City Club of Chicago, Pappas noted that pension funds have three major sources of funding: Payments from the government which employs the workers, payroll deductions from the workers, and interest money from investments.
There is no solution except evacuation.  

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