Legal

When Detroit became the biggest city in U.S. history to file for bankruptcy last month, it turned public attention to the municipal-bond market, where cities and states go to borrow money. Was this sleepy, often-overlooked area of the financial world actually dangerous?

The think tank says the proposed rule make sense, "given the risks defined contribution plan participants face."

The U.S. Department of Labor and the Securities and Exchange Commission have renewed their agreement to share information on retirement and investment matters.

Is the city obliged to its past? Or can Detroit renege on its promises to thousands of retirees for the sake of its present city services?

Pension experts say that whatever decisions Detroit makes could set a precedent for retiree benefits in other cash-strapped cities and counties nationwide. To a degree, some precedent has exists, in Central Falls, R.I.

With trillions of dollars at stake nationwide, a dispute is raging over how best to calculate pension values, leaving school districts, municipalities, states and public employee groups to wonder whether they're at risk.