Employment/Human Resources

Less is More: Lessons Learned from Detroit Bankruptcy’s Unfunded Pension Battles

Participants in the Detroit bankruptcy are presently considering the legal and metaphysical question of whether a state constitutional provision can mandate that, unlike other contracts, unfunded pension obligations must be paid in a municipal bankruptcy without any impairment or reduction. Unfortunately, bankruptcy is the land of broken promises and impaired contracts but, regardless of the outcome of the legal debate, there may be practical answers emanating from the case for all those who are watching Detroit.

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