[quote=davelj]…My point is that it remains to be seen what happens to public pensions in bankruptcy. I suspect they will be cut back but that most or all of the cutbacks will occur for those with large pensions, just as in the case of the PBGC…[/quote]
davelj, Let’s use the City of SD’s DROP program as an example and also the thousands of “deals” CA jurisdictions made with tenured employees to get them to retire a little early, such as adding additional year(s) of service on at the end of a career in order to “spike” their retirement pay.
These machinations, however long a “past practice,” are NOT protected by law. I agree that former employees who are receiving extraordinarily high pensions which have nothing to do with years of service and their highest 1-3 years of pay are being unjustly enriched and their pensions could be subject to a cut in a municipal or county BK.
