Originally Posted by devildog2067
Pensioners entered a legally binding contract, which is something else entirely. It should have been very obvious that there was no possibility that the government would have the funds to pay the contracts at the time they were signed. That's part of the reason I left government service.
Because the governments are broke, they pursue legal methods (like bankruptcy) which void a contract when one party is incapable of paying.
The pensioners are at the mercy of whatever they get. That's the nature of depending on someone else to fund one's retirement. There simply isn't going to be enough revenue to fund pension systems, no matter how much you want to raise taxes. You can only squeeze the taxpayer so much.
The interesting thing about cities going bankrupt is that it makes things better for the employees because the books are now opened. No more "behind closed doors" awarding of contracts or funding pet rograms.
Vallejo employees are essentially being paid the prevailing wage for the area with similar benefits. If they didn't they would have no one wanting to work for them. See San Jose for details on that. They are trying to retroactively nogotiate without bankruptcy and it is going badly.