re: Pensions may bankrupt Dallas (Reason)

The genesis of this problem began with the Texas Legislature in the 1990s when they authorized the City of Dallas and other municipalities to pay 8 to 9 % interest on contributions. The thinking at the time was that by paying a higher return on investment, cops & firefighters would stay employed longer. Now, after years of bad investments, Dallas is trying to repair a broken ponzi scheme whereby outflow of funds is greater than inflow and many retirees have withdrawn all of their funds as a precaution. One bankruptcy firm recommended to the City that they max out their credit to replenish the fund. I know of one retiree who has just been living off the interest. Who the hell gets an 8 to 9% payback nowdays?