Wednesday, December 04, 2013

Have a Public Pension? You May Want to be Concerned!


Detroit's bankruptcy has been ruled legal.  Let the haircuts begin.  That is, pensioners will likely receive something like "eleven cents on the dollar."  The courts ruled that pensions are not protected by state constitutions.  Why?  Because federal bankruptcy laws trump state constitutional laws when it comes to bankruptcy.  Article 1, Section 8 of our Constitution states as follows: "To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States."  In other words, pensions are just like any other debt when it comes to bankruptcy.  Take heed pensioners of California and Illinois.  You are next in line!  Like I been saying for the past several years that if you have a pension in Illinois see if you can take a lump-sum distribution and get the "you know what" out of the state.


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