Government workers face reduced or cancelled pensions as cities and states are hit with financial distress and bankruptcy. Government leaders are dealing with the difficult choice of solving the problem one of 3 ways: increase taxes, divert funds from pensions, or persuade workers to relinquish money they are owed. More often than not, it is the workers who must give up their promised retirement salve. State and local pension plans in the U.S. now have less than three-quarters of the money they need to meet their promised payouts, their lowest level since at least 2001. For more advice on protecting your pension in the event of bankruptcy, please feel free to reach out to us. Please also review this article for more detail on this topic.