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Wednesday, December 22, 2010

Public Pensions: An Alabama Town as a Possible Future

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 ...

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