The proper role and scope of government

[TheMercenary]

Biggus...V'sssss

[TheMercenary]

Mayoral Chief of Staff Theresa Mintle helped enact a special early-retirement plan at her former employer—the Chicago Transit Authority—that entitled her to a $65,000 annual pension she wouldn't have qualified for otherwise.

Read more: http://www.chicagobusiness.com/artic...#ixzz1bhm537dC

[Lamplighter]

If Rahm Emanuel's name is in an article, juices flow.

ChicagoBusiness
By: Greg Hinz and Robert Herguth
October 24, 2011

Top Rahm aide set herself up for sweet CTA pension

Mayoral Chief of Staff Theresa Mintle helped enact a special early-retirement plan at her former employer—
the Chicago Transit Authority—that entitled her to a $65,000 annual pension she wouldn't have qualified for otherwise.

Official records obtained in a joint probe by Crain's and the Better Government Assn. indicate
Ms. Mintle is eligible for a pension of $64,908.53 at age 65, based on just eight years of service at the agency.
The early-retirement sweetener passed in 2008, when she was chief of staff to then-CTA board Chairman Carole Brown.
Ms. Mintle resigned from that job last spring to assume similar duties for Mayor Rahm Emanuel.

Ordinarily, Ms. Mintle, 47, would have needed 11 years of service to qualify for a pension at the CTA,
a milestone she wouldn't have reached until 2014.
But in 2008, she was involved in the approval and possibly the design of an early-retirement sweetener
for agency executives containing two separate clauses that,
together, allowed her to buy extra service credits and lock in her pension
in exchange for leaving her job by mid-2011.
After days of avoiding questions from Crain's and the BGA, Mr. Emanuel's office said late Friday
that Ms. Mintle has decided to forgo the CTA pension. “She has no intention of participating in the program”
and has not contributed the $53,000 needed to secure her benefits under the plan,
a spokeswoman for the mayor's office said.

However, the terms of the early-retirement plan give Ms. Mintle eight years to change her mind,
make the contribution and lock in the pension.

So now, what has Ms Mintle actually done ?
She worked for the Transit Authority for 8 years.
She would have been eligible for retirement benefits in 3 more years
She contributed $64,908.53 towards her own retirement
That is $8,113 per year
She will need to wait 18 years to start receiving benefits

The point of Merc's entire "expose" is...
She will need to pay an additional $53,000 if she wanted to secure these benefits.
That's about $10K per year for a pension 18 years down the road---

My God, Oh the humanity... Such "sweet" pension ... NOT !
.

[Pico and ME]

lol

I still don't like Rahm, tho.

[BigV]

He's channeling LBJ:

"Make the bastard deny it."

[Lamplighter]

Furthermore, with respect to Ms Mintle above

If Ms Mintle did not secure her retirement via the $53,000 advance payment,
it seems likely to me she would have withdrawn the $64,908.53 from her own retirement account.
She would have had to pay income tax on that amount, unless she could roll it over to another retirement account.

Ms Mintle was Chief of Staff, but the changes in the CTA system were the responsibilities of her boss, not hers.

There is nothing in Merc's link to fault either Ms Mintle or Mr Emanuel.
But I'm sure Merc will keep trying.
.

[classicman]

contributing $64,000 TOTAL over the years and getting a $65,000 ANNUAL pension
are two very different things. jus saying

didn't read it, don't care enough.

[Lamplighter]

A deferred annuity for $65k at 7% for 18 yrs yields less than $200k
I doubt the wording of the link can be interpreted as $65k per yr

[classicman]

Well thats what it says ...

Under terms of the plan, she has an option to purchase six extra years of credits for $52,663.35. If she pays that amount—she hasn't yet, but has another eight years to do so—at age 65 she will be entitled to an annual pension of at least $64,908.53

Apparently there are more of them.

For instance, former CFO Mr. Anosike will have to pay an additional $59,000 in exchange for a pension of $115,414, records indicate, but he worked for the CTA for 12 years and bridged his pension to cover 12 prior years of employment with the city. Ms. Sapyta, the former comptroller, will have to pay $52,489 for an eventual $98,405 pension, but she worked for the CTA for about 20 years.

And here I thought only New Jersey (cough/Whelan/cough)had this kind of BS going on.

[Lamplighter]

Good catch, Classic.
It's embarrassing to make such a mistake, particularly when it's so public.
I misinterpreted the statement in lead paragraph. I apologize.

I found the information later in the article saying that Ms Mintle
had already contributed $72,000 in her 8 yrs of CTA service.

For a deferred annuity at 7% return on that balance would be ~ $89k now,
and about $270k when she reaches retirement age at 65 yr
If she contributed an additional $53k now, this could add ~ $160k when she reaches 65 yr

Thus, her total balance at 65 yr could be $270k + $160k or ~ $430k
Her service credits would be 8 + 6, or equivalent to working 14 years for CTA.
Such a balance might pay out $65k per year, or about a third of her annual ($175k) salary

When she left the CTA, Ms Mintle's replacement was hired at the same pay range.
While $175,000 /yr salary seems a lot, maybe Chicago does pay such salaries
to Chief of Staff for the heads big agencies such as the CTA

So, all in all, I do not yet see any criticism of Ms Mintle or Mr Emanuel,
and stand by my comments in my original post.

[classicman]

??? dunno ???
Look up Jim Whelan in New Jersey. See if he did anything "strange" with respect to his pension.

[TheMercenary]

Originally Posted by Lamplighter

The point of Merc's entire "expose" is....

Actually it is another example of the Obama Cabal and Chicago politics that changed the rules to benefit the few. Socialism is good for everyone but the socialists....

[TheMercenary]

Originally Posted by Lamplighter

But I'm sure Merc will keep trying.
.

Anyone but Obama in 2012!

[Lamplighter]

Pick one: Romney, Cain, Perry, Bachmann, Paul, Huntsman, Gingrich, Santorum, McCain, McConnell, Graham, Brewer, Bentley, Parnell, Bush, Jindal, Chistie, Kasich, Scott, Walker, McDonnelll, Palin, Cheney, Forbes, O'Donnell, Blakely, Owens, Army, Koch, Rove, Will... in 2012

It really won't matter, you and they will both know they were only second best.

(UT: I promise I won't do the color/size thing again.)

[Undertoad]

Your forgot my favorite, Thaddeus McCotter.

He deserved more of a shot, he was the one with a sense of humor.