The Chicago Way

In Chicago, union executives get to retire on a public pension:

Twenty years later, 23 retired union officials from Chicago stand to collect about $56 million from two ailing city pension funds thanks to the changes, a Tribune/WGN-TV investigation found. Because the law bases the city pensions on the labor leaders’ union salaries, they are reaping retirement benefits that far outstrip the modest salaries they made as city employees.

[Pension experts] warn that it not only creates opportunities to scam the system but also robs the city of its ability to control pension costs. The city doesn’t set union salaries, the most important ingredient in determining the size of the leaders’ pensions.

Better yet, no one knows who made the rule:

No one from either the state Legislature or city government will take credit for the law, which passed in 1991, and the process of drafting pension legislation in Springfield is so shrouded in secrecy that there’s no way of knowing exactly whom to hold responsible.

But, whoever made it, it apparently can’t be fixed:

Making changes won’t be easy, however. That’s because the state constitution says pension benefits cannot be diminished once they are earned.

This serves as another reminder that Chicago is run by thieves. But at least it doesn’t affect the rest of us. We would never be so stupid as to put the Chicago machine in power nationwide.

(Via Hot Air.)

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