Journal Article

When States Default: Lessons from Law and History

Abstract: This Commentary discusses how a severe fiscal crisis at the state level could impact the interests of the state?s public pension holders. Drawing lessons from the relevant laws, historical precedents, and the case of Arkansas after its default in 1933, I argue that in spite of the protections that exist, no public retirement system is completely immune to impairment if the money runs out.

Keywords: state finances; retirement; pension funds;

Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 2017

Issue: October

Order Number: 16