Hatch Says Detroit Bankruptcy Ruling Should Serve as Call to Action to Take on Pension Crisis
WASHINGTON – After a bankruptcy judge in Detroit, Michigan ruled today that the city’s public pension funds would be subject to cuts in bankruptcy, U.S. Senator Orrin Hatch (R-Utah), Ranking Member of the Senate Finance Committee, issued the following statement calling for action to confront America’s public pension crisis:
“It’s an indisputable fact that Detroit’s public pension debt was a major factor that drove it into insolvency. Today’s ruling is a wake-up call that we have to get serious about confronting skyrocketing public pension debt, which is reaching a crisis point in some parts of our country. Continuing to ignore the financial disaster coming our way is a risk we can’t afford to take. The time is now to act. I’ve introduced legislation to begin tackling this crisis in a reasonable way to ensure taxpayers aren’t on the hook.”
NOTE: Earlier this year Hatch introduced the SAFE Retirement Act (S. 1270) that would allow states and localities to have the option of providing future retiree benefits through annuities that would ensure greater security for retirement income.