In a case with major implications for California, a judge in Michigan ruled that the bankrupt city of Detroit can impose cuts to its municipal pension plans.Just like California's, Michigan's constitution states that pension obligations cannot be discharged. That's cute, says the federal bankruptcy judge that isn't bound at all by state law.
Why does this cause me to worry? Because every year I get a letter from CalSTRS, the State Teachers Retirement System, stating that I shouldn't worry that STRS is underfunded because the state constitution guarantees that the taxpayers will just pick up any shortfall. Good planning, that.