[quote=FlyerInHi]Sounds pretty reasonable, njtosd. Each legal issue is separate.
The federal bankruptcy court will rule on the bankruptcy.

The unions might pursue a parallel case in state courts.

We will see if the state of michigan is forced to make the pensioners whole.[/quote]

First, I feel very sorry for the people who will very likely see their pensions drastically reduced. I would think that there might be differing treatment based on age (i.e. 80 year olds who can’t go back to work vs. 45 year olds who are hoping that their pension will still be there when they retire), if you were trying to be realistic about it.

These pension promises always remind me of Wimpy in the Popeye cartoon. The employer (Detroit, GM, whatever) says “I’ll gladly pay you tomorrow for a hamburger (labor) today.” It sounds good but you have to be suspicious. Especially when the city was clearly doing poorly. Anyone who has believed over the last 20 or so years that unfunded pension obligations (Detroit or elsewhere) will be honored in the future is very trusting. Legislation prohibiting unfunded or underfunded pensions is desperately needed.

I don’t expect pensions to be there when I retire, I don’t expect Soc. Sec. to be there when I retire. Maybe they will – but I have to make sure that I can take care of myself whether those safety nets are there or not.