Should States be allowed to declare bankrupcy to get out of pension obligations? (Congress, cost)

[In Serious Debt]

The latest buzz in the media is related to plans in Congress to pass a bill that will allow States to go Bankrupt so they can get out of their pension obligations. Considering how terrible the finances and tax collections are for the States and the high cost of pensions it is only a matter of time before the State government will find a way to stop paying them. What do you think?

http://www.nytimes.com/2011/01/21/bu...ankruptcy.html

[burdell]

I think it's just another example of Congress not giving a rat's ass about the people. When they pass legislation eliminating Congressional pensions I might start believing they actually give a crap about the country.

[AuDiBelle]

They should be able to renegotiate the terms of the very contracts that are driving the states straight into insolvency.

[flordelis]

Originally Posted by In Serious Debt

The latest buzz in the media is related to plans in Congress to pass a bill that will allow States to go Bankrupt so they can get out of their pension obligations. Considering how terrible the finances and tax collections are for the States and the high cost of pensions it is only a matter of time before the State government will find a way to stop paying them. What do you think?

http://www.nytimes.com/2011/01/21/bu...ankruptcy.html

What ever it takes to set aside these ludicrous agreements - what ever it takes.

[desertdetroiter]

Absolutely not. They should perhaps renegotiate the pensions. But getting rid of pensions has always been a bad idea. Besides, if you're not going to give someone a pension, you should say so up front, and not have them work for 2, 3, or 4 decades and THEN tell them that you're getting rid of pensions.

I know that Repubs dream about the day when earning a pension won't be possible. It brings them joy just thinking about it. Every country on Earth worth its salt has old folks that get pensions. It's the right thing to do in a society like ours.

[HappyTexan]

Sure..and dump all those pensions on the PBGC.

Pension Benefit Guaranty Corporation - Wikipedia, the free encyclopedia

"During fiscal year 2010, the PBGC paid $5.6 billion in benefits to participants of failed pension plans. That year, 147 pension plans failed, and the PBGC's deficit increased 4.5 percent to $23 billion. The PBGC has a total of $102.5 billion in obligations and $79.5 billion in assets."

[cw30000]

Go default and start over. As long as it will lower my tax

[Wonderful Jellal]

Yeah clearly.

[burdell]

Originally Posted by flordelis

What ever it takes to set aside these ludicrous agreements - what ever it takes.

And what of those from the state who should be held responsible for those "ludicrous agreements"? Should they be allowed to just walk away, pensions in hand? Should we just have another feel free to bash labor session while mismanagement is rewarded?

[burdell]

Originally Posted by cw30000

Go default and start over. As long as it will lower my tax

What makes you think it would lower your taxes? The same people who put the states in those positions in the first place would likely just find a different way to screw up.