Largest Public Pensions Face $8.4 Trillion Hole

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Offline Letsbereal

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Largest Public Pensions Face $8.4 Trillion Hole
« on: April 17, 2013, 05:50:42 PM »
Moody's may downgrade $12.5 billion in muni debt
17 April 2013
, New York (MarketWatch)
http://www.marketwatch.com/story/moodys-may-downgrade-125-billion-in-muni-debt-2013-04-17

Credit rating agency Moody's Investors Service revised its methodology for analyzing municipal pension obligations Wednesday,

in the process placing the credit ratings of $12.5 billion in municipal securities under review for possible downgrade
.

Those cities under review for downgrade include Chicago, Cincinnati, Minneapolis, Santa Fe, and Portland.

Pension liabilities have been a key cause for concern in the $3.7 trillion municipal bond market, with the two most recent cities to file for municipal bankruptcy -- Stockton, CA and San Bernardino, CA -- both suffering from outsized liabilities.

In an effort to recognize the impact of liabilities on credit-worthiness, the rating house will take into account the size of adjusted pension obligations relative to total resources, Moody's said.


Cities gonna be seriously OD’d.
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Offline Letsbereal

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Illinois House Approves Pension Bill Asking Workers to Pay More
3 May 2013
, by Tim Jones (Bloomberg)
http://www.bloomberg.com/news/2013-05-02/illinois-house-approves-pension-bill-asking-more-of-workers-1-.html

Excerpt:

The Illinois House of Representatives approved a bill designed to repair the nation’s worst-funded pension system by raising contribution levels for state employees and delaying the retirement age.

The measure, approved today 62 to 51 in the Democrat- dominated chamber, faces an uncertain future in the Senate, which is preparing its own approach to resolving a $97 billion liability.

With annual retirement costs projected to grow by more than $900 million in next year’s budget, lawmakers in both chambers approved different bills in March to rein in expenses.

House Speaker Michael Madigan, a Chicago Democrat, proposed this latest measure making employees contribute two percentage points more of their incomes.

Annual cost-of-living increases would be restricted, pensionable income capped and younger employees required to work until 67.

“It’s time to do the right thing, the responsible thing, to provide for a pension system that protects investments and gives security without bankrupting our state,” said Representative Elaine Nekritz, a Northbrook Democrat and a co- sponsor.

The municipal-bond market rewarded the vote as yields on Illinois debt dropped after the measure passed.

A taxable pension-obligation bond sold in June 2003 and maturing in June 2033 traded at a yield as low as 4.98% after the bill was approved, down from 5.14% in the minutes before the vote concluded, according to data compiled by Bloomberg.
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Offline Letsbereal

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Illinois Pension Impasse Predicted in Penalty Jump: Muni Credit
« Reply #2 on: June 19, 2013, 10:50:38 PM »
Illinois Pension Impasse Predicted in Penalty Jump: Muni Credit
19 June 2013
, by Brian Chappatta & Tim Jones (Bloomberg)
http://www.bloomberg.com/news/2013-06-19/illinois-pension-impasse-predicted-in-penalty-jump-muni-credit.html

Excerpt:

Illinois borrowing costs are headed for the biggest monthly increase since May 2012 as investors bet two rating cuts won’t be enough to spur lawmakers to fix the worst-funded U.S. state pension system.

The extra yield bond buyers demand on the state’s taxable debt has jumped 0.25% this month, data compiled by Bloomberg show.

The rising borrowing costs and credit reductions this month from Moody’s Investors Service and Fitch Ratings are the backdrop for a special session set for today.

It’s the second called by Democratic Governor Pat Quinn in 10 months after lawmakers failed to deal with a $97 billion unfunded pension liability before leaving the capital May 31.

Even as lawmakers prepared to convene, they acknowledged the likelihood of failure.

Democratic leaders are moving to create a conference committee to develop a compromise, said Rikeesha Phelon, spokeswoman for senate President John Cullerton.

The governor will call another special session next month, according to his spokeswoman, Brooke Anderson.

“Investor confidence for the state has been diminishing,” said Joseph Gankiewicz, a credit analyst in Princeton, New Jersey, at BlackRock Inc., which oversees $114 billion of munis.

“They’ve had multiple chances to address this.”

July Session

Illinois’s five state pension systems had 43% of assets needed to cover obligations in fiscal 2011, the lowest ratio among U.S. states, Bloomberg data show.

Quinn, 64, has said coming up with a fix “has confounded legislatures and governors for 70 years.”

Pension funding is a nationwide challenge.

American localities face more than $2 trillion in unfinanced retirement obligations
, according to Moody’s Investors Service.

Detroit, the insolvent Michigan city about 300 miles (480 kilometers) east of Chicago, plans to cut pension benefits for 30,000 workers and retirees as it tries to avert a record municipal bankruptcy.

It defaulted on muni debt for the first time last week. Benefits are at the heart of the Illinois stalemate.

House Speaker Michael Madigan’s pension plan is designed to save $187 billion over 30 years.

It would require state pensioners to pay more for their retirement, an approach that Cullerton said violates the state’s constitution.

Cullerton proposed giving employees a choice of pension or health-care reductions that would save an estimated $50 billion.

The Chicago Democrats haven’t come up with a compromise, resulting in the impasse.

Taxpayer Hit

Illinois is rated four steps above junk by Standard & Poor’s, Moody’s and Fitch, the lowest among states.

Taxpayers may be hit by the consequences of legislative inaction as soon as next week, when the state plans to issue $1.3 billion of general-obligation bonds, its biggest sale since May 2012.

Eric Friedland, head of muni research in New York at Schroder Investment Management North America, said he’s “not expecting any miracles to occur in one day.”

The company oversees about $2 billion in munis, including Illinois debt.

Now isn’t a good time to buy Illinois bonds because the $3.7 trillion municipal market is on pace to decline for a second straight month, and because of volatility in the state’s debt after the rating cuts, Friedland said.
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Offline Letsbereal

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Moody’s Cuts Chicago Rating Amid Crime, Pension Liability
« Reply #3 on: July 18, 2013, 09:33:22 PM »
Moody’s Cuts Chicago Rating Amid Crime, Pension Liability
18 July 2013
, by Tim Jones and Amanda J. Crawford (Bloomberg)
http://www.bloomberg.com/news/print/2013-07-18/moody-s-cuts-chicago-rating-amid-crime-pension-liability.html

Excerpt:

Mounting pension liabilities have cost Chicago another cut in its credit standing as Moody’s Investors Service reduced the general-obligation debt rating for the nation’s third-largest city by three steps to A3, citing a $36 billion retirement-fund deficit and “unrelenting public safety demands” on the budget.

Moody’s also placed the city’s $7.7 billion in general-obligation bonds under a negative outlook, indicating another cut may be made.

The moves follow a review that began in April, when the New York-based rating company said it was reevaluating the credit effects of municipal retirement obligations.

Public pensions nationwide are under significant stress following the longest recession since the depression and the financial crisis that punished asset values.

The magnitude of the estimated deficit for all plans ranges from $900 billion to more than $4 trillion, depending on the assumptions used.

“Absent significant growth in the city’s operating revenues, escalating pension funding requirements will increasingly strain the city’s operating budget, as pension outlays compete with other spending priorities, including debt service and public safety,” Moody’s analysts said yesterday in the report.

They also cited the political obstacles to meaningful retirement system reform at the state level.
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Offline Letsbereal

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S&P cuts Chicago outlook on pension concerns
« Reply #4 on: September 15, 2013, 07:56:33 AM »
S&P cuts Chicago outlook on pension concerns
14 September 2013
, by Nathalie Tadena (MarketWatch)
http://www.marketwatch.com/story/sp-cuts-chicago-outlook-on-pension-concerns-2013-09-14

Standard & Poor's Ratings Services lowered its outlook on Chicago to negative from stable, citing risks involved in how the city will address its upcoming large pension payments.

Chicago's overall unfunded liability of the four plans is $19.4 billion as of 2012, up from $11.9 billion in 2009.

The plans altogether are 35% funded, the ratings firm said.

S&P, which affirmed Chicago's rating six levels into investment grade at A-plus, said the city has a very weak budgetary performance as well as a very weak debt and contingent liabilities position.

However, Chicago benefits from a broad and diverse economy, given its status as a major regional economic center, and has adequate budgetary flexibility.
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Offline Letsbereal

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Chicago Bears Biggest Pension Load of Debt-Laden Locales
« Reply #5 on: September 27, 2013, 02:06:15 AM »
Chicago Bears Biggest Pension Load of Debt-Laden Locales
26 September 2013
, by Brian Chappatta (Bloomberg)
http://www.bloomberg.com/news/print/2013-09-26/chicago-bears-biggest-pension-load-of-debt-laden-locales.html

Chicago and surrounding Cook County have the largest pension burdens among the 50 most-indebted U.S. local governments, according to Moody’s Investors Service.

The third-most-populous U.S. city’s pension liabilities represent 678% of its revenue, a Moody’s study released today shows.

Cook County had the second-worst ratio at about 382%, while the Metropolitan Water Reclamation District of Greater Chicago had the sixth-highest burden at 323%.

Moody’s cut Chicago’s bond rating three levels to A3, seventh-highest, in July and dropped Cook County a step to A1, fifth-best, in August, citing pension liabilities in both cases.

“There are several large local governments with outsized pension burdens large enough to cause material financial strain,” notably Chicago and Cook County, according to Moody’s.

“Chicago’s tax base is pressured by the unfunded pension liabilities of the city and overlapping local governments.”

The findings mirror those in the New York-based company’s June study of state pensions.

That report showed that Illinois, Moody’s lowest-rated U.S. state with an A3 grade, had the highest ratio of retiree obligations to revenue, at 241%.

Investors in the $3.7 trillion municipal market have penalized Chicago since Moody’s cut its rating on July 17, the day before Detroit’s record U.S. municipal-bankruptcy filing.

Chicago’s pension obligations relative to the full value of its taxable real estate, a measure of total economic wealth, is 12.6%, compared with Detroit’s 10.8%, according to today’s report.

The average among the 50 issuers is 2.7%.

City Pays

The extra yield buyers demanded to own Chicago general-obligation bonds maturing in January 2042 instead of benchmark AAA munis rose to 3.69 percentage points this week,

close to the highest since at least February and up from 2.57 percentage points on July 17, data compiled by Bloomberg show.

Moody’s has also lowered ratings on the Chicago Board of Education, the Cook County Forest Preserve District and the Chicago Park District because of pension liabilities.

All the retiree funds were created by the state, and changing them requires legislative approval.

Chicago’s Democratic Mayor, Rahm Emanuel, 53, has said Detroit’s bankruptcy “should be a wake-up call for all of those who try to put their head in the sand and say that we don’t have a problem” with pensions.

His administration has said that retirement contributions will cost Chicago about $1.2 billion in 2015, more than twice the $467 million forecast for 2014, if the state legislature doesn’t restructure the system.

Weakest Funding

The Illinois pension system is the worst-funded among U.S. states, and a fix has eluded lawmakers for years.

In the past 100 days, legislators have failed twice to reach an agreement in special sessions called by Governor Pat Quinn, a Democrat, to deal specifically with retiree obligations.

Not all local governments face such severe pension strains.

The District of Columbia’s retiree obligations represent 11% of revenue, lower than all the other localities in the Moody’s report.

In all, 30 of the 50 have annual net pension liabilities that exceed tax receipts.

Moody’s calculates adjusted net pension liabilities using the difference between the actuarial value of the plan’s assets and adjusted liabilities, according to the report.

The 50 issuers it analyzed were selected because they have the most debt outstanding.
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Offline Letsbereal

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Junk-Rated Chicago Has A Billion Dollar Pension Problem
« Reply #6 on: September 12, 2014, 06:11:32 PM »
Chicago at Brink of Swaps Fee as Bond Ratings Fall: Muni Credit
12 September 2014
, by Darrell Preston and Elizabeth Campbell (Bloomberg)
http://www.bloomberg.com/news/print/2014-09-12/chicago-at-brink-of-swaps-fee-as-bond-ratings-fall-muni-credit.html

Excerpt:

Chicago’s deteriorating credit quality has pushed taxpayers to the brink of paying almost $400 million to Wall Street banks on derivatives contracts that are backfiring.

The city and Chicago Public Schools, both at risk of rating reductions as pension obligations mount, agreed to interest-rate swaps with companies including Bank of America, Goldman Sachs and Loop Capital Markets last decade as part of debt sales.

The accords were designed to cap expenses in case interest rates rose. The deals went awry as the Federal Reserve cut borrowing costs during the recession.

The issuers’ combined bill to exit the deals has reached about $400 million, almost two-thirds more than the metropolis spent on streets and sanitation in 2013.

The contracts on the derivatives stipulate that the banks can demand payment when the issuers’ credit rating falls to a specified level.

For the city, that trigger is one level away on most contracts after Moody’s Investors Service cut it to three steps above junk.

“These governments are in a precarious position,” said Laurence Msall, president of the Civic Federation, a Chicago watchdog on government finance.

“Hundreds of millions of dollars are at stake.”

Derivatives Trail

States and cities in the $3.7 trillion municipal market have paid at least $5 billion to banks to end interest-rate swaps, data compiled by Bloomberg show.

The contracts contributed to the bankruptcies of Detroit and Jefferson County, Alabama.


In Chicago this week, Alderman Roderick Sawyer introduced a resolution in the city council calling for Mayor Rahm Emanuel to file an arbitration claim with the Financial Industry Regulatory Authority to recover payments the city and school district have made on swaps.

That could generate more than $600 million and eliminate the need for termination payments, said Jackson Potter, an official with the Chicago Teachers Union.

“The mayor has made a commitment that the city will not enter into any new debt swaps of this kind and has enacted measures to modify and reduce risk to protect the taxpayers of Chicago,” Carl Gutierrez, spokesman for the city’s budget office, said in an e-mailed statement.

“We monitor our swap liability carefully and are in continuing conversations with our swap counterparties to manage the risks of our derivative portfolio,” Bill McCaffrey, a schools spokesman, said via e-mail.
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Offline Letsbereal

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Largest Public Pensions Face $2 Trillion Hole, Moody’s Says
« Reply #7 on: September 26, 2014, 04:45:14 AM »
Largest Public Pensions Face $2 Trillion Hole, Moody’s Says
25 September 2014
, by Brian Chappatta (Bloomberg)
http://www.bloomberg.com/news/print/2014-09-25/largest-u-s-public-pensions-face-2-trillion-gap-moody-s-says.html

The 25 largest U.S. public pensions face about $2 trillion in unfunded liabilities, showing that investment returns can’t keep up with ballooning obligations, according to Moody’s Investors Service.

The 25 biggest systems by assets averaged a 7.45% return from 2004 to 2013, close to the expected 7.65% rate, Moody’s said in a report released today.

Yet the New York-based credit rater’s calculation of liabilities tripled in the eight years through 2012, according to the report.

“Despite the robust investment returns since 2004, annual growth in unfunded pension liabilities has outstripped these returns,” Moody’s said.

“This growth is due to inadequate pension contributions, stemming from a variety of actuarial and funding practices, as well as the sheer growth of pension liabilities as benefit accruals accelerate with the passage of time, salary increases and additional years of service.”

U.S. states and cities are contending with underfunded worker retirement systems.

The 18-month recession that ended in June 2009 wiped out asset values and forced cuts to contributions.

Now, liabilities are crowding out spending for services, roads and schools.

Conservative Calculations

The largest systems included in the Moody’s report manage about 40% of the $5.3 trillion in U.S. public pensions.

They include the California Public Employees’ Retirement System, the California State Teachers’ Retirement System and the New York State and Local Employee Retirement System.

The New York plan had the best 10-year average return among the 25 systems, at 8.67%.

In April 2013, Moody’s announced it would take a more conservative approach to calculating liabilities than states and cities, such as by using market-based discount rates to “capture both the top-line liability growth and the material decline in interest rates.”

Moody’s latest estimations of pension liabilities are higher in every case than those reported by the systems.

It put 29 local governments on review for downgrade as a result.

Three months later, it dropped Chicago’s rating three levels because it has the largest pension burden among the most-indebted localities.

The only two bright spots among the 25 largest pensions are the Tennessee Consolidated Retirement System and Wisconsin Department of Employee Trust Fund, which had muted growth in unfunded liabilities, according to Moody’s.
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Offline Letsbereal

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Chicago "Junking" Triggers $2.2 Billion Payment, Deepening Financial Crisis
13 May 2015
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2015-05-13/chicago-junking-triggers-22-billion-payment-deepening-financial-crisis

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Offline Letsbereal

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Chicago’s Junk Rating From Moody’s Puzzles Investors
14 May 2015
, by Brian Chappatta and Elizabeth Campbell (Bloomberg)
http://www.bloomberg.com/news/articles/2015-05-14/chicago-s-junk-rating-from-moody-s-puzzles-market-with-s-p-at-a-

Excerpt:

No U.S. city has provoked a bigger disagreement between the two largest bond-rating companies than Chicago. Investors aren’t sure who to believe.

Moody’s Investors Service has cut the third-largest city’s rating seven levels since July 2013, most recently knocking it this week to Ba1, one step below investment grade.

Standard & Poor’s has rated it A+, the fifth-highest rank, for more than four years.

The six-level split is more than for any other city and unheard of for an issuer with $8.1 billion of general-obligation debt like Chicago, said Matt Fabian, a partner at Municipal Market Analytics.

As the city plans $383 million of refinancing deals next week, trading in the $3.6 trillion market signals bond buyers are moving closer to Moody’s view, while stopping short of assessing it like junk.

“The market is having difficulties on price discovery,” said John Donaldson, who helps manage about $700 million of munis, including Chicago debt, as director of fixed income at Haverford Trust Co. in Radnor, Pennsylvania.

“What level should something with that big a gap trade at?”
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Offline Letsbereal

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Chicago Faces $2.2 Billion Bank Payout After Rating Cut to Junk
« Reply #10 on: May 15, 2015, 05:12:31 PM »
Chicago Faces $2.2 Billion Bank Payout After Rating Cut to Junk
11 May 2015
, by Kasia Klimasinska (Bloomberg)
http://www.bloomberg.com/news/articles/2015-05-13/chicago-faces-2-2-billion-bank-payout-after-rating-cut-to-junk



Chicago Mayor Rahm Emanuel

Excerpt:

Chicago may have to pay banks as much as $2.2 billion after Moody’s Investors Service dropped its credit rating to junk, deepening the fiscal crisis in the third-largest U.S. city.

The company’s decision Tuesday to cut Chicago’s $8.1 billion of general obligations two ranks to Ba1, one step below investment grade, allows banks to demand that the city repay debt early and exposes it to fees to end swaps contracts, Moody’s said in a statement. JPMorgan Chase & Co., Barclays Plc and Wells Fargo & Co. are among the city’s bankers.

The downgrade adds to the financial pressure on Chicago, which was already the lowest-rated of any big U.S. city except Detroit.

It follows an Illinois Supreme Court ruling last week that safeguards retirement benefits, casting doubt on Chicago’s ability to curb its $20 billion pension-fund shortfall.

“It certainly becomes a wakeup call for action for the political leaders, and also other parties, to come to the table and find a solution,” said Dan Heckman, senior fixed-income strategist at U.S. Bank Wealth Management, which oversees about $128 billion in Kansas City, Missouri.

Chicago’s cash-strapped retirement funds are exerting a growing strain on the city after it failed for years to set aside enough money to cover the benefits it promised.

The annual payment into workers’ pensions is set to rise by $600 million next year.


Moody's Cuts Chicago Bond Rating to Junk; City Faces $2.2 Billion in Various Termination Fees; Irresponsible to Tell the Truth
12 May 2015
, by Mike Shedlock (MISH'S Global Economic Trend Analysis)
http://globaleconomicanalysis.blogspot.nl/2015/05/moodys-cuts-chicago-bond-rating-to-junk.html
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Offline Letsbereal

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Re: Chicago Faces $2.2 Billion Bank Payout After Rating Cut to Junk
« Reply #11 on: May 21, 2015, 01:50:45 AM »
CNBC's Santelli and Mish Discuss Municipal Bonds; Egan-Jones on Chicago; S&P Blames Moody's; Message to Bondholders
20 May 2015
, by Mike Shedlock (MISH'S Global Economic Trend Analysis)
http://globaleconomicanalysis.blogspot.nl/2015/05/cnbcs-santelli-and-mish-discuss.html
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Offline Letsbereal

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Re: Chicago Faces $2.2 Billion Bank Payout After Rating Cut to Junk
« Reply #12 on: May 22, 2015, 10:46:22 PM »
Junk-Rated Chicago Has A Billion Dollar Pension Problem
22 May 2015
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2015-05-22/junk-rated-chicago-has-billion-dollar-pension-problem

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Offline Letsbereal

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Five Chicago Suburbs Headed for Bankruptcy (More Illinois Cities Will Follow)
29 May 2015
, by Mike Shedlock (MISH'S Global Economic Trend Analysis)
http://globaleconomicanalysis.blogspot.nl/2015/05/five-chicago-suburbs-headed-for.html
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Offline Letsbereal

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Re: Chicago Faces $2.2 Billion Bank Payout After Rating Cut to Junk
« Reply #14 on: June 02, 2015, 06:59:44 AM »
Here's What Happens When Your City Is Cut To Junk
1 June 2015
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2015-06-01/heres-what-happens-when-your-city-cut-junk
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Offline larsonstdoc

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Re: Chicago Faces $2.2 Billion Bank Payout After Rating Cut to Junk
« Reply #15 on: June 03, 2015, 12:10:18 AM »

  Chicago is just above Detroit.  Wow.

  Looks like the employees are going to have a hard time collecting their pensions.
I'M A DEPLORABLE KNUCKLEHEAD THAT SUPPORTS PRESIDENT TRUMP.  MAY GOD BLESS HIM AND KEEP HIM SAFE.

Offline Letsbereal

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Chicago pensions move to center stage
« Reply #16 on: June 03, 2015, 12:44:50 PM »
Chicago pensions move to center stage
3 June 2015
, by Alicia H. Munnell (MarketWatch)
http://www.marketwatch.com/story/chicago-pensions-move-to-center-stage-2015-06-03

Excerpt:

Moody’s Investor Services cut Chicago’s bond rating from Baa2 to Ba1; Standard & Poor’s lowered the City’s rating from A+ to A-; and Fitch Ratings cut Chicago’s ratings from A- to BBB+.

The action-forcing event appeared to be the assumption that the recent Illinois Supreme Court decision, which ruled unconstitutional the 2013 pension changes made for current workers in state plans, would make it difficult for Chicago to deal with its pension problems.

The state’s constitution says that pension benefits for current workers “shall not be diminished or impaired.”
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Offline Letsbereal

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Ferrovial, Macquarie put up for sale concession in Chicago toll road
« Reply #17 on: June 27, 2015, 10:03:47 PM »
Ferrovial, Macquarie put up for sale concession in Chicago toll road
26 June 2015
, Madrid (Reuters)
http://www.reuters.com/article/2015/06/26/us-ferrovial-motorway-usa-idUSKBN0P616O20150626

Spanish infrastructure group Ferrovial and Australia's Macquarie have put up for sale their concession for the Chicago Skyway toll road in the U.S., a source with knowledge of the matter said on Friday.

Ferrovial has a 55% stake in the concession while Macquarie holds the remaining 45%. They had won the concession in 2005 with a bid worth $1.83 billion.

Ferrovial said the Chicago Skyway had revenues of €62 million ($69.45 million) and an operating income of €54 million last year.
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Offline larsonstdoc

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People of Chicago--The Godfather Wants More of Your Money
« Reply #18 on: July 08, 2015, 10:59:04 AM »
http://abc7chicago.com/politics/chicago-state-lawmakers-consider-tax-hikes-/831874/

CHICAGO, STATE LAWMAKERS CONSIDER TAX HIKES


Chicago homeowners could face up to a 30 percent hike in their property taxes to pay for the city's financial problems.

Not only is that much of a city property tax increase possible, there are efforts under way on the state and county levels to raise income and sales taxes, all because politicians are running out of options to pay their public worker pension debt.

"We are willing to do things to write the wrongs that have been committed over the years," Chicago Mayor Rahm Emanuel said on July 1.

When Mayor Emanuel suggested a $200 million property tax increase to help pay teacher pensions, he did not mention the additional increases that might be needed to pay city worker and police and firefighter retirement benefits.

Exactly one week earlier, Cook County President Toni Preckwinkle proposed raising the county sales tax by one full cent on the dollar.

"If we don't deal with our pension crisis now, we're just creating more problems down the road," Preckwinkle said.
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Offline Letsbereal

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In Key Decision, Junk-Rated Chicago's Pension Reform Bid Ruled Unconstitutional
25 July 2015
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2015-07-25/key-decision-junk-rated-chicagos-pension-reform-bid-ruled-unconstitutional
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Offline larsonstdoc

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Re: Junk-Rated Chicago Has A Billion Dollar Pension Problem
« Reply #20 on: July 26, 2015, 07:22:43 AM »

  Well, it looks like the workers are going to get abut 30% of what they were promised. 

  According to the article----they should have been asked to put in more---the bureauRATS didn't do their job and force them to pay in more.

  The godfather tried to put it on the backs of the taxpayers  and the judge said NO, that is unconstitutional.

  Of course, there is probably corruption at many levels---being Chicago.

 
I'M A DEPLORABLE KNUCKLEHEAD THAT SUPPORTS PRESIDENT TRUMP.  MAY GOD BLESS HIM AND KEEP HIM SAFE.

Offline Letsbereal

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Re: Junk-Rated Chicago Has A Billion Dollar Pension Problem
« Reply #21 on: August 15, 2015, 03:15:58 PM »
Chicago mentioned on the Keiser Report:

Keiser Report: Hot show in the ‘great state of Chicago’ (E797) with Mish http://forum.prisonplanet.com/index.php?topic=61127.msg1538814#msg1538814
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Houston Faces Pension Crisis In Latest Example Of Local Government Fiscal Folly
« Reply #22 on: November 16, 2015, 05:41:20 PM »
The Next Chicago? Houston Faces Pension Crisis In Latest Example Of Local Government Fiscal Folly
16 November 2015
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2015-11-16/next-chicago-houston-faces-pension-crisis-latest-example-local-government-fiscal-fol
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The Chicago Pension Scandal: $100,000+ Teacher Pensions Costing Taxpayers $1 Billion
24 April 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-04-24/chicago-pension-scandal-100000-teachers-pensions-costing-taxpayers-1-billion
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It's Now Almost Impossible To Save For Retirement
« Reply #24 on: April 25, 2016, 03:53:02 PM »
It's Now Almost Impossible To Save For Retirement
25 April 2016
, by Simon Black - Sovereign Man (Zero Hedge)
http://www.zerohedge.com/news/2016-04-25/its-now-almost-impossible-save-retirement
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Offline Letsbereal

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Re: Largest Public Pensions Face $2 Trillion Hole
« Reply #25 on: April 30, 2016, 10:33:08 PM »
UPS Braces For $3.8 Billion Charge As Treasury's Pension Benefit Decision Looms
30 April 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-04-30/ups-braces-38-billion-charge-treasurys-pension-benefit-decision-looms
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Offline Letsbereal

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Re: Largest Public Pensions Face $2 Trillion Hole
« Reply #26 on: May 13, 2016, 03:26:49 AM »
Here Come A Lot Of Angry Teamsters: One Of America's Largest Pension Funds Demands A Taxpayer Bailout
12 May 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-05-12/here-come-lot-angry-teamsters-one-americas-largest-pension-funds-demands-taxpayer-ba
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Offline Letsbereal

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Re: Largest Public Pensions Face $2 Trillion Hole
« Reply #27 on: May 20, 2016, 01:56:08 PM »
Chicago Pension Liabilities Jump 168%, Understated By $11.5 Billion
20 May 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-05-20/chicago-pension-liabilities-jump-168-understated-115-billion

Chicago’s Pension-Fund Woes Just Became $11.5 Billion Bigger
20 May 2016
, by Elizabeth Campbell (Bloomberg)
http://www.bloomberg.com/news/articles/2016-05-19/chicago-s-pension-fund-troubles-just-became-11-5-billion-bigger
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Re: Largest Public Pensions Face $2 Trillion Hole
« Reply #28 on: May 21, 2016, 04:56:32 PM »
407,000 Workers Stunned As Pension Fund Proposes 60% Cuts, Treasury Says "Not Enough"
21 May 2016
, by Michael Shedlock - Mish Talk (Zero Hedge)
http://www.zerohedge.com/news/2016-05-21/407000-workers-stunned-pension-fund-proposes-60-cuts-treasury-says-not-enough
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Re: Largest Public Pensions Face $2 Trillion Hole
« Reply #29 on: May 26, 2016, 02:40:17 PM »
Detroit, Fresh Out Of Bankruptcy, Discovers $195M Pension Shortfall
25 May 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-05-25/detroit-fresh-out-bankruptcy-discovers-195m-pension-shortfall
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Re: Largest Public Pensions Face $2 Trillion Hole
« Reply #30 on: June 02, 2016, 04:48:55 AM »
Illinois Lawmakers Override Bill Veto To Ease Chicago Pension Payments, Propose "Financial Transaction Tax"
1 June 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-06-01/illinois-lawmakers-override-bill-veto-ease-chicago-pension-payments-propose-financia

The Federal Reserve Has Created An Unprecedented Disaster For Pension Funds
1 June 2016
, by Mike Krieger - Liberty Blitzkrieg (Zero Hedge)
http://www.zerohedge.com/news/2016-06-01/federal-reserve-has-created-unprecedented-disaster-pension-funds
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Offline Letsbereal

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Re: Largest Public Pensions Face $2 Trillion Hole
« Reply #31 on: June 11, 2016, 01:03:54 AM »
The Pension Bubble: How The Defaults Will Occur
10 June 2016
, by Peter Diekmeyer - Sprott Money (Zero Hedge)
http://www.zerohedge.com/news/2016-06-10/pension-bubble-how-defaults-will-occur-0
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Offline Letsbereal

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Re: Largest Public Pensions Face $2 Trillion Hole
« Reply #32 on: July 18, 2016, 03:33:03 PM »
Largest US Pension Fund Suffers Worst Annual Return Since Financial Crisis Due To Heavy Stock Losses
18 July 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-07-18/largest-us-pension-fund-suffers-worst-annual-return-financial-crisis-due-heavy-stock
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Offline Letsbereal

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Re: Largest Public Pensions Face $2 Trillion Hole
« Reply #33 on: July 31, 2016, 04:47:30 PM »
Rahm Emanuel Says Chicago Pension Crisis "Improving", Facts Show He Is Lying
31 July 2016
, by Michael Shedlock - MishTalk (Zero Hedge)
http://www.zerohedge.com/news/2016-07-31/rahm-emanuel-says-chicago-pension-crisis-improving-facts-show-he-lying
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Offline Letsbereal

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Re: Largest Public Pensions Face $2 Trillion Hole
« Reply #34 on: August 23, 2016, 12:23:36 AM »
Top 25 Corporate Pension Plans Alone Are Underfunded By Over $225 Billion
22 August 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-08-22/top-25-underfunded-corporate-pension-plans-are-225bn-underwater
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Largest Public Pensions Face $8.4 Trillion Hole
« Reply #35 on: August 24, 2016, 10:08:10 AM »
Illinois Warns Of "Crippling Tax Hikes", "Devastating Impact" If Largest Pension Fund Admits Reality
23 August 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-08-23/illinois-warns-crippling-tax-hikes-devastating-impact-if-largest-pension-fund-admits

Excerpt:

Two weeks ago, we decided to take a look at what would happen if all federal, state and local pension plans decided to heed the advice of Mr. Gross. As one might suspect, the results were abysmal.  We conservatively assume that public pensions are currently $2.0 trillion underfunded ($4.5 trillion of assets for $6.5 trillion of liabilities) even though we've seen estimates that suggest $3.5 trillion or more might be more appropriate.  We then adjusted the return on asset assumption down from the 7.5% used by most pensions to the 4.0% suggested by Mr. Gross and found that true public pension underfunding could be closer to $5.5 trillion, or over 2.5x more than current estimates.  Others have suggested that returns should be closer to risk-free rates which would imply an even more draconian $8.4 trillion underfunding .
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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #36 on: August 25, 2016, 12:23:10 AM »
Can The Various Pension And Benefit Ponzis Survive The Coming Wave Of Baby Boomer Retirements?
24 August 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-08-23/can-various-pension-and-benefit-ponzis-survive-coming-wave-baby-boomer-retirements

Demographic HomeMageddon Underway... Will Last Until At Least 2035
24 August 2016
, by Chris Hamilton - Econimica (Zero Hedge)
http://www.zerohedge.com/news/2016-08-24/demographic-homemageddon-underway-will-last-until-least-2035
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Pension Cuts On Deck In Latest Shock To California Workers
« Reply #37 on: September 06, 2016, 01:23:15 PM »
Pension Cuts On Deck In Latest Shock To California Workers
6 September 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-09-06/california-court-rules-against-salary-spiking-which-pension-recipients-have-used-def
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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #38 on: September 15, 2016, 08:47:36 PM »
U.S. public pensions turn to currency as returns sour
14 September 2016
, by Gertrude Chavez-Dreyfuss - New York (Reuters)
http://www.reuters.com/article/us-global-investing-currency-analysis-idUSKCN11K25C
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Offline Letsbereal

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #39 on: September 19, 2016, 09:37:24 PM »
The Gravest Threat To Your Retirement
19 September 2016
, by Tom Dyson - International Man (Zero Hedge)
http://www.zerohedge.com/news/2016-09-19/gravest-threat-your-retirement
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