According to the Arizona Republic, a new proposal to substitute a 401(k)-style plan for professional politicians and judges might save the public hundreds of millions of dollars.

Near all-time-low interest rates are creating massive demand for pension bond issues that have offered some very strong yields to investors - and relief to retirees.

Investors have had a nice four-year run in municipal bonds. Since the start of 2000, national long-term muni bond indexes have returned 8.5 percent annualized.

Oakland's leaders took a risk by borrowing $213 million to cover pension payments, betting that the fund's investments will earn more than the bonds cost.