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 Constitution’s ban on government seizure of property. Cutting benefits for new hires is allowed, but the lower costs won’t be realized until those employees start to retire a couple decades from now.

2. Increase employee contributions and/or raise the retirement age. Either move would require negotiations with unions, which are certain to mount stiff opposition, but ten states increased required employee contributions to pension and benefit plans in the past two years, according to a recent report by the Pew Center on the States. Others have raised the minimum retirement age. Now seems a good time for more states to follow suit. ....

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