Doug,

Thanks for visiting our blog and sharing your thoughts. I don’t believe any of the panelists, including Barton Waring, argued, or even suggested, that it would be appropriate for public entities to shed pension obligations via bankruptcy. Their argument for the risk-free rate was primarily based on the certainty associated with those pension obligations. More than anything else, I think they are seeking greater transparency and sound financial planning on the part of state and city governments.

-Dave