by Calculated Risk on 12/22/2010 10:33:00 PM

Two stories on Prichard, Ala ...

From the NY Times: Alabama Town’s Failed Pension Is a Warning

Prichard did something that pension experts say they have never seen before: it stopped sending monthly pension checks to its 150 retired workers, breaking a state law requiring it to pay its promised retirement benefits in full.

And from the WSJ: Chapter 9 Weighed in Pension Woes

Prichard proposed capping benefits to current retirees at about $200 a month, down from monthly payments of as much as $3,000. "That's not a hair cut, that's a scalping," said Larry Voit, who represented a group of 40 retired city workers in Prichard, population 27,500.

Prichard's pension was in far worse shape than most public plans, but the outcome in Prichard could serve as a guide for other plans ...

Earlier:
• November Existing Home Sales: 4.68 million SAAR, 9.5 months of supply
• Existing Home Inventory increases 5.4% Year-over-Year