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One new idea that has not yet been proposed is for Congress to empower states to have the ability to reform their insolvent pension plans. Such legislation would pre-empt state laws that prohibit states from making necessary reforms. It would allow pension reform laws passed by state assemblies to take effect.

Comment: This is monumentally important if true as a legal matter. If the pension crisis is important to you, read it.

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J.A. Herzrent
Not much detail reported here. I expect contract impairment would continue as an issue. New law, if upheld, would probably be ineffective as to benefits already accrued. I would expect 5-10 years of litigation to follow, while pension millionaires continue to deplete the funds that have been set aside. Prompt bankruptcy filings might have a better chance of forcing a fair allocation of pension assets to all people who are counting on them, rather than just paying them out to the current crop of retirees. Any such haircuts should be applied first to pensions above a certain dollar amount so that the people with the lowest pensions… Read more »