When pension plans are managed properly, the amount of money in the plan equals the accumulated promises to active and retired employees.
FAILURE OF PENSION INTEGRITY:
When the pension fund does not have enough money to meet its debts. This has two consequences:
- Those who depend on the plans for their retirement are less secure.
- Those who have to pay into these funds -- the taxpayers -- end up paying for past services that did not impact them and benefit costs they did not incur.
The Center for Pension Integrity (CPI) evaluates public employee pension plans, encourages governments to maintain the integrity of their plans, and advocates for solutions when some governments have lost control of the integrity of their pension plans. CPI is led by Ed Bachrach, a retired business owner, philanthropist and public policy practitioner who has spent nearly two years studying the pension issue. He first focused on the five major public plans in the City of Chicago, considering and analyzing a range of solutions and ultimately advocating for a comprehensive settlement approach. Recognizing the barriers Illinois faces at the local level to embrace legislative solutions, coupled with the fact that the problem is larger than Chicago, larger than Illinois, Ed shifted his focus and studied the problem through a national lens — resulting in a proposal for relief in the form of federal legislation. His bio can be found below.
Chairman, Center for Pension IntegrityEd Bachrach is the retired Chairman and CEO of Bachrach Clothing Inc., a national retailer of men’s fashions. He received a BSBA in accounting at Northwestern University and a Masters of Public Administration from Harvard’s Kennedy School. Bachrach was licensed as a Certified Public Accountant and practiced for four years. He is the founder of Build Cambodia, a non-profit organization that focuses on bettering lives in Cambodia through improved healthcare and other related projects. He is a member of the board of directors of the Illinois Policy Institute, Kartemquin Films, and the US Board of the Eugene Bell Foundation, an organization that treats North Koreans for MDR TB. He resides in Chicago and Decatur, IL.