After Detroit's bankruptcy, a nasty surprise surfaced from the wreckage: not just the city itself, but its retirees and would-be pensioners – from police officers to city clerks – would suffer, thanks to an unexpected pension fund shortage of some $3.5 billion.
A firm hired by the emergency manager of the city used a different method to calculate pension values than the one Detroit had used for years, turning what everyone believed was a surplus into a shocking deficit.
Now, a dispute is raging over which way is right, leaving school districts, municipalities, states and public employee groups to wonder whether they, too, are at risk. Trillions of dollars are at stake nationwide.
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