I think we've all read or see him or heard reports on the pension problems are around the country of don't. Couple -- shows voted over the years. And it feels like have been reading more and more about it lately but to a couple of days ago this one caught -- -- well above Detroit. Going through bankruptcy. Right in the middle of a federal judge -- rules that pension benefits could be reduced in a bankruptcy proceeding. And there's a couple of things there that that gives Paul number one Michigan has the constitution. That says that it its pensions or on the saleable. The -- their bill to patrol is going to be there. And then they literally say in the constitution. If that denotes higher taxes or budget cutbacks. We will do whatever it takes to fund the pensions. Well when the judge comes in and says the constitution doesn't matter in a bankruptcy proceeding. You can reduce. The benefits -- limited benefit. Well some people thought well this gives distressed cities leveraged. Claw back -- backtracked on on the problems Susan cells. So is as usual check here in Louisiana go to John Kennedy pursued treasurer John as always welcomed sure appreciate it did to. You know much to do -- if I remember from conversations in the past we don't have a pension problem and we unit who. -- wish or -- I thought we were funded through summaries. We have. War funded pension Serbs the rural more memory really today. It'll all as the war that they -- the most underfunded but they're legislature. They had other governor. -- had just passed legislation that smuggled out totally -- probably true. And and and Borchardt talking about Chicago in particular. They're gonna Poland their election by a 509. Million dollars by. 2015. Totally a group contributions one point four billion. For current and future retirees. Ended ended no pension bill can be breached by November of next year. When it is going to be drafting it's that -- budget suitable -- helped raise taxes or cut services. Combination of the two. Are we headed in that direction or are we -- from. No it must reduce something we're in that direction a -- you look at the numbers. We are current you Graham was nineteen point 02 bill that was called nineteen billion. Six so that billion is -- state employees' retirement system battle on. Point four billion is -- teachers or parents system. And that nineteen and an UAL. We'd like nineteen billion dollars more in our search. Then we have money to back. Solid links. And but not eighteen billion. If you -- -- silence. That. Retirement system will be aren't every year in the stock market 7%. Now do that yet now yep -- Yeah on that's pretty good long term and Bernie Madoff could go to the arm bar but a button. It would use a more realistic you're great at 4%. The unfunded accrued liability deficit probably culture that twenty realistically what are thirty. Are guaranteed as. Was vacation mission dark cars were you are guaranteed by the state constitution. But the federal judge's decision in Detroit. History are they're -- all the cigarette because basically the federal judge. In Detroit so I don't care -- -- to ensure that federal -- it's good for bankruptcy code. And I am saying that the city or. Art antique ego government likes to go in -- You can you can change your -- So it will what they do pension funds and a better invested just. In the sought marketers and -- soon. -- -- He -- the big ones. Do do have been very sophisticated investment and it certainly the -- They rule by large cap stocks midcap stocks small cap -- best -- -- -- private equity deals. All different types of bonds mezzanine financing. Some of the -- systems have gotten in trouble they invested in the raw land in Phoenix before that crash attention. You -- in the paper where they could they go out and how might talks in the divide golf courses. Losses from our investment. Portfolio have contributed. In the nineteen billion that the real problem the reason real reason. We have a nineteen billion dollar deficit is is he calls. Number one. We made more promises -- we can keep for years I stopped doing it but for years legislature. Would absorb a special appeal to help Al. -- to a career twenty -- hundred people get special benefits they're pinch. Without Whitman money in the back up. And but it that was spurred the legislature. That stopped on but I mean -- -- 60s70s. And eighties you know that you -- the legislature would take care of their forums and -- made it's special -- Via the real the bottom one reason that this system on -- -- -- -- -- the legislature just at could not much it may ought promises. But -- -- back at the -- with money in my may make these promises. That makes the state employees in the teacher and everybody there. But. I hope they don't turn out to be all of our options but in my right now it's not clear. Of this this has been a little bit surprised -- take my interest in the U pension problems in Detroit Chicago. Cities in California city and Florida and others and and many others around the country. I thought right solution to the minute and and we were good to go but in talking drawers recruiter John Kennedy not the case actually doing show. Breeding them with a minute things that are read about pension problems all of those country of particular -- that California Chicago and reports. We know about Detroit that no intention given sure about a blood a -- reserve federal judge just recently moved from room. That in Detroit the pension benefits could be reduced or eliminated in bankruptcy proceeding. Now Michigan as the constitution wall. That says there at the pensions they're good to go they're not gonna be touched benefits are always going to be -- even delineated. That they'll go to higher taxes or budget coach or combinations to. And never talks pensions well. The federal judges give an imprudent petition not permission just said. You can override constitutional law he would doesn't apply this. And we're saying you can do where it would be of interest so I'll call John Kennedy are straight -- thinking notre wise. That we were okay in this state and John did did I hear you correctly we're nineteen billion dollar worth of unfunded. It. Eighteen billion won what do we do what's the solution. Well -- potentially out of the -- like number one we need to stop the bully. For -- knew I urge not people already in the system and -- weighed my options that people are. We we need to go to crucial for a lot of 41 K I know people when private sector and out -- you have to be -- why you do it. Because there has to be consistent with federal tax -- And with Social Security rule but it he'd given that. You'll at least. Spot on the bleeding for new employees each. Number two. Actually the legislature and all the state -- what it -- dale. And realistically. Assess. What they UAL ears and see if we can agree tool long term -- woods. Aren't actually -- it -- Latin. Deficit now call. Now we get that one -- or in the 1980s we decided to set an idea all the regard on the way they did it very simple goal try that little bit the first campaign first in years and and will pay a lot in the next in. When it's in order to kick the can down the road. You know it's like me and walked -- 101000 dollar credit card bill -- -- -- a ball. Kabul pay ten dollars a much more interest is gone a mile. So we got shut up -- realistic. Right. And the third thing I think we need to do not so much for the big systems but for the small works. Great. We gotta be something about compassion. I mean. Can't go out. And and Ambac -- courses when you don't know -- -- -- -- golf -- search speculate as to why aren't or. One of the system has bought 400 million dollars to a group out. About Philadelphia and Cheney and him like Bernie paid option -- If you give you money will guarantee -- twelve and we'll battle alone should call this say -- are all but I put the money and it. And that they're -- -- it was 400 million dollars. So don't look for things we can do right now. Not more likely to app. -- outlets. Unless -- -- and admit I'm not criticizing but this just -- war on election governor likes freak. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Cadet in America. Reference should be charity whether it's city state -- that. Democrat will not come out and make you see what it about bankruptcy. I think it's no worse than a bully or on January it's stealing from somebody. If you get new employee can change whatever you're benefit packages. Because you're new import. It would do other things some of what she should get any year. And I also would be entitlement program state that. Oh -- you. -- not -- -- fifty politicians that are represented much later. The president the United States if everybody was -- -- It will sink or retirement. I do not think -- all these problems that steps that shouldn't take in. We have a politician or some politicians that -- out. They -- again a bunch of entitlements to people you're voting. -- to their satisfaction to keep my office so helping the nation black and including every individual. State. Until the United States that the we have to do more so don't depend -- -- -- -- -- -- -- We have support it felt otherwise nation M Rhode. I don't care who -- -- what it should shouldn't be here need to be more hatred and do -- our country and put these and so. That ups can't general argue that we dated we have to go do it. Right. Well yes and you make very pointless but I won't sugarcoat this decision. Unless it's reversed on appeal. This decision by the federal judge in Detroit is a big victory. I -- impact every pension plan in at least in the public sector there. I have always operated under the assumption. And as you reporting on earlier problem because our pensions or protected. In the state constitution. That is our -- got in trouble we have the farm much even edit it rating actions. Now what this judge and orders that no. -- -- -- To assist federal all federal bankruptcy code in the federal bankruptcy code. Trawl for our primes -- Blu-ray or whatever you won't call it -- all your constitution federal law controls. And if you don't want to bankruptcy. You can get out I in this connection. That's a big big big big the. John Kennedy every time I call you all learned something a motto always sure that don't even know that but -- learned something. I appreciated called so much -- -- -- -- a Merry Christmas up in the air speed it up. John Kennedy or straight treasure this is double the deal bigots ebony and -- pint three of them.