All bond contracts are very clear as to what is and what is not callable and it is up to the purchaser of the bond to make the decision.
The state borrowing money to build infrastructure is of a higher importance and benefits society a hell of alot more then the state backing failed pension funds. When the state f-cks up, the fix to the f-ck up should not be a meat cleaver but a well thought out solution so you don’t permanently damage the probablity of future investment.
Again, making me spell out this out is just a game you are playing because you already know all this but you just want to play this game.
Morally, there is a distinction between the state borrowing money to provide infrastructure to everybody, as opposed to the state obligating itself to pay for a poorly managed fund that only benefits a small fraction of the overall state population. Using taxpayer money to pay interest on loans that are used to build projects that are for the use and benefit of the entire community makes a hell of alot more sense then using taxpayer money to pay for a bungled up fund that benefits a fraction of the community when compared to the overall state population.
Hiding behind poorly written pension contracts or antiquated requirements seems to be your path chosen here rather then going, okay that was a major f-ck up, let’s try to make things right.
