People can criticize the pensioners, but they had a good-faith agreement with the city that those pensions would be honored, and 16-cents-on-the-dollar will likely put them on welfare at best and on the streets at worst. The city had an obligation to manage its revenues to support its obligations. Now, IF the pensions had a medical insurance component, THAT is the part that should be cut or rolled-back.
The greedy unions and greedy politicians made deals promising each other Other Peoples Money. They failed in any fiduciary responsibility they had.
Let the public officials who made those promises pay up.
Unfortunately government exempted itself from having to fully fund their pensions. These workers should have been able to contribute more to their pensions too.