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Mayor Daley Gamed System To Up Pension

From the Chicago Tribune:

How Daley beefed up his pension payouts

Former mayor took advantage of state’s convoluted system

By Jason Grotto
May 02, 2012

Two years into his reign as Chicago’s longest-serving mayor, Richard M. Daley took advantage of the state’s convoluted pension system to significantly increase his potential payout while saving $400,000 in contributions, a Tribune/WGN-TV investigation has found.

Daley, a former state senator, made it happen by briefly rejoining the legislative pension plan in 1991. He stayed there just one month before returning to Chicago’s municipal pension fund, but the switches made him eligible for benefits worth 85 percent of his mayoral salary — a better rate than all other city employees receive.

He was just 49 years old at the time. Even if Daley had never won another election, he could have started collecting a public pension at age 55 of $97,750 a year. Without the steps he took, his public pension benefits at that age would have been worth just $20,686.

Of course, Daley went on to win five more elections, remaining ensconced on the fifth floor of City Hall for the next two decades. When he retired last May, his pension benefits had grown to $183,778 a year — about $50,000 more than he would have otherwise received

Remember, that is $50,000 a year –- for the rest of his life or the life of his spouse. Which is a good lesson to all of us: ‘never steal anything small.’

The Tribune and WGN-TV already have detailed how Daley used the city’s pension funds for political purposes. In 1991, the same year he secured his much larger pension, Daley’s administration helped aldermen land a dramatic pension increase, providing them with benefits far exceeding those of the average city worker.

The same legislation, rushed through the General Assembly on the last day of the session, also gave private labor leaders public pensions based on their much higher union salaries. Under Daley’s watch, former Chicago Federation of Labor President Dennis Gannon was given a one-day city job that allowed him to collect a public pension based on his $200,000 private union salary

Which reminds me of another old saying: ‘you wash my back and I’ll wash all the other union thugs’ backs.’

Daley blessed benefit increases for city workers without ensuring that payments into the funds would cover the costs, a problem worsened by the economic downturn. Today, the combined unfunded liabilities of Chicago’s four pension funds have grown to nearly $20 billion, which doesn’t include the $6.8 billion shortfall at the teachers fund

Huh. Well, luckily this is happening in just one city in America. It’s not like other cities have done this. And it is not like our President and the federal government are doing this.

This article was posted by Steve on Friday, May 4th, 2012. Comments are currently closed.

3 Responses to “Mayor Daley Gamed System To Up Pension”

  1. canary says:

    In 1991 Michelle Obama was working for Mayor Daley

  2. canary says:

    Obama’s white Consumer Czar the white Elizabeth Warren explains she has been claiming Minority Status to get an edge.

    Glenn Beck:

    Christian Science Monitor explained:

    Warren’s campaign released statements from officials at the universities where she has worked, stating that her purported minority status had nothing to do with decisions to hire her. Those institutions are the University of Texas, University of Pennsylvania, the University of Houston Law Center, and most recently Harvard Law School.

    Former Harvard Law Dean Robert Clark, who held that post when Warren was hired in the early 1990s, said “her native American heritage was not a factor in the discussion or the decision.”

    But the Boston Herald reported that Warren listed herself as a minority from 1986 to 1995, in the Association of American Law Schools’ annual directory.

    Warren claimed, “I listed myself in the directory in the hopes that it might mean that I would be invited to a luncheon, a group something that might happen with people who are like I am. Nothing like that ever happened, that was clearly not the use for it and so I stopped checking it off.”


  3. Tater Salad says:

    Brings a brand new meaning to the term of “The Party of Food Stamps” doesn’t it?

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