Despite Detroit And Illinois Pension Deficits, Cities And States Aren't Bad Off

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Public pensions are at risk in both Illinois and in the city of Detroit. In Illinois Tuesday the legislature passed a pension reform bill cutting benefits for retirees. And, also Tuesday, a federal judge gave Detroit the go ahead to slash is public pension and healthcare benefits. Are these examples models for other states and cities with huge budget problems? Alicia Munnell, director of the Center for Retirement Research at Boston College, told Robert Siegel that, in fact, Detroit's pension benefits were relatively well funded and were not the primary budget problem.
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