Alexandria, Va.— The latest American Bankruptcy Institute (ABI) podcast features ABI Resident Scholar Prof. Melissa Jacoby talking with Prof. Amy Monahan of the University of Minnesota Law School about Prof. Monahan’s extensive research into the public pension crisis. “The public pension issue is very much an issue of law and politics. There are big political incentives to underfund public pensions,” Monahan said. “The law is really uncertain with respect to what you can and can’t do to try to address it once you get in that underfunded position.”
With respect to Illinois, which has a constitutional provision stating that pension benefits shall not be diminished or impaired, Monahan said the issues facing the state’s public pension crisis are especially tough. “You’ve got severely underfunded plans at both the state and municipal level,” Monahan said. “You have [the Illinois] Supreme Court that has said that these benefits are absolutely protected.”
“Pensions, unless the fund is going to run out of money tomorrow, are seen as a problem you can put off,” Monahan said. “I think the most meaningful reform that could be made going forward is coming up with a way to ensure adequate annual funding.”
Click here to listen to the podcast.
The impact of public pension debt on the economy will be the focus of a special “Eye on Bankruptcy” panel on April 16 at ABI’s Annual Spring Meeting in Washington, D.C. For a press pass to attend the session or Annual Spring Meeting, please contact ABI Public Affairs Manager John Hartgen at 703-894-5935 or jhartgen@abiworld.org.
ABI’s podcast series features interviews with important figures or experts discussing timely bankruptcy topics or issues. ABI podcasts are freely available to members, the public and the press, and can be accessed on ABI’s Newsroom website.
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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abi.org/calendar-of-events.