LexisNexis® Legal Newsroom
Detroit's Bankruptcy: the Pension Issue

Judge Rhodes ruled yesterday that the city's bankruptcy can proceed. He also ruled that the state constitutional provision that protects state employees' pensions from being diminished or impaired is preempted by federal law. Appeals will be filed, but the bankruptcy will move forward. Judge...

Public Unions Push Back on Pension Reforms: What Will Courts Say

by Lou Cannon Public employee unions and their allies are flexing their muscle in California, where a sweeping pension reform initiative that once seemed destined for the November ballot will instead take a legal detour that will delay it. San Jose Mayor Chuck Reed, the initiative's author, said...

State Pensions Could Be 61 Percent Underfunded

States have only 39 percent of the assets they need to cover their public employee pension obligations, according to an estimate from State Budget Solutions, a non-partisan, non-profit, national public policy organization. That estimate is based on an annual investment return of 3.2 percent (the 15-year...

State Net Capitol Journal: Unfunded Pension Liabilities Mount But San Jose Offers Hope

by Lou Cannon The shadow of unfunded public pension liabilities casts a menacing cloud over the otherwise mostly bright futures of U.S. states and municipalities. The situation is gravest in Illinois, where court rulings have stymied legislative attempts at reform, but a score of states and a slew...

Feds Ease State Efforts to Create New Private Sector Pensions

by Rich Ehisen As a young man, California resident Scott Kirchner was admittedly not concerned with saving money for retirement. “Until I was probably 31, the idea of saving any money for anything was foreign to me,” he says. Now, at age 56 and with the knowledge that he is far closer...