Highly recommended reading for economists, political scientists, and government managers. And for people who tell us that there's no reason to worry that our Social Security benefits are safe, note well this:
Among the many shortchanged by the city’s bankruptcy, Detroit’s retired municipal workers have gotten a particularly raw deal. The plan imposed deep cuts in future pension and health-care benefits. Perhaps more galling, it also required retirees to pay back a decade of interest they earned on city-sponsored retirement savings accounts. These so-called clawbacks averaged nearly $50,000 per retiree. In one circumstance, a retiree returned $96,000.
(Multi-employer pension plans are in big trouble, too.)