A 10-year teacher contract recently approved in Palatine School District 15 provides back-to-back 6 percent salary increases for the four years leading to retirement for eligible teachers. A teacher entering the retirement track with an annual salary of $80,000 would be making $100,998 per year four years later.
Analysts at Morgan Stanley, led by Michael Zezas, said the rising retirement-system costs has made government more leery of running up new debts. State and local revenues have not kept pace with growth in total liabilities that now amount to $4.97 trillion, the analysts say.
Across the United States, municipalities and states are struggling with similar unfunded liability crises regarding pensions and civil service retirement packages. For example, Los Angeles is facing $15 billion in debt for its public safety, water, power workers, and general employees pension. In South Carolina, a state plan that serves one in nine South Carolina residents is looking at a $24.1 billion shortfall.
Illinois’ total of unpaid bill is enough to saddle every man, woman, and child in the state with a thousand dollars of debt.
The state’s comptroller on Friday said Illinois’ backlog of unpaid bills hit 12-point-eight billion dollars.
Secret polls reveal Marine Le Pen to be more popular among voters than official surveys have forecast, according to a French media columnist. The far-right candidate may even have the backing of more than 30 per cent of voters ahead of the presidential elections in late April and May, it has been claimed.
In today’s “Single Best Chart,” Bloomberg’s Tom Keene and Francine Lacqua display the balance sheet to GDP of the Bank of Japan, Federal Reserve, and European Central Bank.
With the annual pace of JGB purchases of around ¥80 trillion ($700 billion), the BOJ’s total assets swelled to about 90 percent of gross domestic product. The BOJ added a negative interest rate in January 2016 and yield curve control last September.
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