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The Looming Pension Collapse: Chicago Collected $90 Million But Paid Retirees $999 Million
Image source: Pixabay.com
The city of Chicago’s pension funds only generated $90 million in investment income but paid retirees $999 million in 2015, according to Chicago City Wire.
Chicago is just one of several cities or states facing a crisis in which pension funds are not generating enough money to cover obligations to retired employees.
An analysis by Chicago City Wire of the six pension funds provides a frightening picture of the city’s economy. None of the funds generate enough money to cover retirement obligations to employees.
“All six operate as government-sanctioned Ponzi schemes, paying retirees with contributions made into the fund by active city employees, as well as taxpayers contributing on those employees’ behalf,” Chicago City Wire reported.
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A Ponzi or pyramid scheme is a con game in which a fraudster uses money from new victims to pay previous suckers.
But it’s not just Chicago. According to Market Watch:
- The Michigan Public School Employees retirement pension fund is $26.7 billion underfunded.
- The South Carolina government employee pension fund is $24.1 billion underfunded.
- The Social Security trust fund is on pace to run out of money by 2034.
Source: http://www.offthegridnews.com/current-events/the-looming-pension-collapse-chicago-collected-90-million-but-paid-retirees-999-million/
