Detroit’s Bankruptcy Ruling Doesn’t Spare the Pensions
The Detroit bankruptcy is not going to prove well for those in the city who made pension contracts with the local government. The author writes:
Rhodes, in his ruling, declared that as far as federal bankruptcy proceedings are concerned, pensions should be treated like any other contract. They don’t get any additional “special protection” from cuts or renegotiations due to bankruptcy restructuring than any other contract or debt incurred by a city.