Public Union Workers Rattled By Threat To Pensions

Public sector workers fear for their retirement after the recent one-two punch of a recent ruling allowing Detroit to declare bankruptcy – putting more than 30,000 city employees’ pensions in limbo – and the Illinois state legislature’s vote to overhaul its $100 billion in public employee pension debt. And, with many cities and states struggling to cover pension fund debt after the financial collapse of 2008 dragged the value of those funds down, even Democrats – long stalwart supporters of union workers and benefits – are voting to curtail coverage and raise retirement ages. Union representatives are speaking out, saying public employees trade a lifetime of low wages for the security of a state retirement, but that now that social contract is being broken. They worry that the precedent set by Detroit and Illinois will lead other state and local governments to take similar measures.