“the outdated defined-benefit pension model used by state governments is not fiscally sustainable.”
Never was meant to be “fiscally sustainable”.
This pension reform just might be the foot in the door in
keeping or preventing states from going bankrupt by massive
federal bailouts. If I were a bond holder in any of these
states I would be worried.
I half agree with you. It will be used to backstop unfunded liabilities but I just don’t see the feds guaranteeing $100K pensions. I suspect many municipal & state retirees will eventually be getting very bad news regarding pension caps, eliminated COLA adjustments, etc.