In a Federalist Society podcast, Professor David Skeel of Penn Law provides some insightful analysis of the Detroit bankruptcy, as well as general possibilities for pension restructuring in bankruptcy. The Federalist Society describes the podcast, “Pension Reform: The Road Forward“, as follows:
On December 3, 2013, a federal judge held that the city of Detroit is eligible to shed billions in debt in the largest public bankruptcy ever in the United States. The judge also ruled that public pensions could be reduced during reorganization, a provision in Michigan’s Constitution notwithstanding. As an increasing number of local and municipal governments find themselves in dire financial straits, leaders are looking to new methods of increasing revenues and cutting costs, including pension reform. Professor David Skeel discussed the challenges faced by cities considering a restructuring of their pension plans, as well as the strength of various arguments regarding the legality of those efforts.
Listen to it here.