Public Sector Plans

Public Sector Plans

The problems facing defined benefit plans maintained for state and municipal plans are front-page news today. This station houses posts and commentary about the legal, funding and public policy challenges facing those plans. And yes, the station icon — a flat tire — alludes to Detroit, the original poster child for municipal plan bankruptcy.

Public Pension Shortfalls in Pittsburgh, Phoenix

Major cities in disparate corners of America provide a fresh — and stark — illustration of how widespread public pension funding shortfalls are. Pittsburgh and Phoenix, cities that could not be much more opposite geographically, are among those grappling with this troublesome matter. Both cities got some bad news on that front in recent days.   Read More

Detroit Bankruptcy Judge Approves Workout Plan

There’s a light at the end of the tunnel for Detroit, its citizens and its pensioners — and it’s not the oncoming train many had expected. Bankruptcy Judge Steven Rhodes approved a plan Nov. 7 that will alleviate $7 billion in debt and invest $1.7 billion in needed services while cutting pension benefits for retired city and municipal workers. When the proceedings began, Detroit had $18 billion in debt, including a significantly underfunded pension and an ongoing deficit.   Read More