Which is not incurred in part for years and decades to come when the ability to pay those debts may be different than it is today.
So why include it in bankruptcy today?
because they are unfunded liabilities..debts.. and we are talking about bankruptcy, where an entity seeks relief from creditors
pension funds are creditors, ergo, they will be included in any bankruptcy filings.
the promise to pay was made in perpetuity, thus, that amount is consider part of the total amount, regardless if it happens today or next week.
it sounds nice to promise money forever, but when the SHTF, you're still on the hook for all that money.
that kinda like saying to the place you got your auto loan that you are filing bankruptcy, but only on the amount that is owed this year..the rest of the debt, due in subsequent years, won't be touched.
i guess the city could try to get away with canceling those pensions and benefits for all those years to come and then only file on the current liabilities... that's certainly one way to reduce the debt total... but we both know that wouldn't pass state constitutional muster... it would be a ****storm of the highest order.
what the future may hold is not a valid reason for not filing bankruptcy when it is realized debts can't be repaid.
I mean, if i went broke today and filed bankruptcy, would it be smart to not include my largest debts on the premise that my fortune might change someday?
not listing debts,especially major debts, kinda defeats the purpose of bankruptcy....ya might as well tell the city to not file bankruptcy on the premise that maybe, hopefully, someday, they might be able to pay their debts.. just go ahead and go further into debt in hopes their fortune will change.