[quote=FlyerInHi]Another point that was made here is that If we screw the retirees, we should screw the bonds holders too.
I see a difference because CAR uses the technicalities to make his arguments.
The pension funds owe the benefits, not the taxpayers as CAR put it. So let the funds exhaust their money first, then we will deal with it, or not. The various governments owe money to the bond holders directly. Let’s deal with different contracts separately. First things first.[/quote]
That’s ultimately a distinction without a difference. Neither are direct obligations of the taxpayer. (bond holders are not going to come knocking on YOUR door for the money.) Both are direct obligations of the state or municipality. The pension funds (in CA, primarily CalPers and STRS) are just a conduit. The state (or school districts in the case of STRS) owes the money. Exactly the same as they owe the money on bonds.
