Detroit Bankruptcy Judge Says Government Pensions Aren’t Protected

A federal bankruptcy judge has ruled Detroit may reorganize under bankruptcy law. The decision means holders of Detroit bonds could take losses, city workers and retirees could see wages and benefits cut, and other creditors could end up with pennies on the dollars owed.

The American Federation of State, County and Municipal Employees immediately filed a notice of appeal. The union says the judge’s ruling amounts to an unconstitutional attack on retiree benefits.

See article to read ...

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Dissecting the Pension Crisis

“Let’s pass it so we can read it and find out what it says!”   Four (4) articles beginning with an explanation of the  Madigan/Cullerton pension reform bill and culminating with the emboldened proponents of pension reform to resurrect long standing objections to the current pension system, the moral issues and financial issues collide head on like two subterranean tech plates.

 

The IL Pension Reform Bill Explained

How are retired teachers, almost retired teachers and distantly retired teachers affected by the recently passed ...

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Proponents of Pension Reform Emboldened by Bankruptcy Ruling

Simply put, there are two sides to Illinois’ financial crisis, which is spearheaded by the underfunded public service pensions.  On one side of the pension crisis issue are the proponents of the staus quo who cite the “moral issue” in support of their cause.  They face an equally energized opponent in advocates of “pension reform” who cite the financial issue in support of their cause.   Like the forces of Hannibal and Sipio marshalling their forces on the plains of Zama,  both appear to be prepared ...

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Illinois Pension System Lacks Transparency

The story of Illinois pensions over the last 20 years is full of reforms that were supposed to put the five state-run government pension systems on sound footing, but failed once they were implemented. Despite repeated attempts at a solution, the state’s official pension debt has jumped to nearly five times what it was in 1995.

Taxpayers and government workers are shell-shocked. And with more and more tax dollars going toward pensions each year, they don’t understand how things got this bad.

Pension managers and legislators have consistently underestimated the ...

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Detroit is Allowed to File for Bankruptcy

A U.S. Bankruptcy judge ruled that the city of Detroit is eligible to enter into Chapter 9 bankruptcy because it met specific criteria required to receive protection from its creditors. See Article 1 to read more.

“Detroit is burdened by $18.5 billion in debt as it struggles to provide even the most basic services to the city’s 700,000 residents. About 40 percent of the city’s streetlights do not work and about 78,000 abandoned buildings litter the city, whose population peaked ...

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A Glance at the Minimum Wage Issue

Should the minimum wage be increased? And if so, by how much? What sort of effects will an increase have? Is it necessary? These are the types of questions that must be asked when talking about minimum wage.

The Federal mandated minimum wage currently sits at $7.25 per hour. If someone worked 40 hours per week for 50 weeks a year, he/she would earn $14,500 for the year. But he/she would not be taking all of that home. 6.2% of that total ...

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Dear Millennials: Your retirement is in trouble

A message to all the young adults struggling to find a place in today’s economy: It gets worse.

Find a job and save your brains out for retirement, Gen Y. And, educate yourself on the ways the older generation helped you get into this mess. It seems Millennials are the generation least prepared for retirement, and for a good number of reasons. They face a particularly intense version of this country’s income growth challenge. Let’s dispense with the basics right up front. ...

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