“the city plans to pay unsecured creditors, including the city’s pensioners,
16 cents on the dollar” 84% LOSS ! There are about 23,500 city retirees.
The city has said about half of its liabilities stem from retirement benefits, including $5.7 billion for healthcare and other obligations, and $3.5 billion involving pensions.
This is the crisis that face all governments with unfunded pension liabilities
Dangerously high unfunded pension liabilities of state and local governments have threatened the fiscal solvency of states and municipalities as well as the nation’s long-term fiscal health, including the U.S. credit rating. Today public pension debt remains as high as $4.4 trillion and outstanding state and local municipal bond debt adds another $3.7 trillion. Last year, Hatch issued a report – which served as the foundation for the legislation – outlining the financial risks of the public pension debt crisis and its negative impact on the American economy.
U.S. Senator Orrin Hatch (R-Utah) Releases Report Detailing Threat of $4.4 Trillion Public Pension Debt