Eight Ways to Avoid a Crash
March 11, 2010
• Paul Ingrassia
Here's a list of practical pension-related recommendations, gleaned from lessons of the GM implosion, that may help cities and states avoid the same fate.
1. Reduce retiree pension and health benefits. This is tricky for several reasons. Cutting benefits for existing employees usually is judged a breach of contract that would violate the Constitutions ban on government seizure of property. Cutting benefits for new hires is allowed, but the lower costs wont be realized until those employees start to retire a couple decades from now.
2. Increase ....