http://www.nytimes.com/2012/09/20/business/teachers-pension-a-big-issue-for-chicago.html?_r=0 the fed will bail out chicago and states by printing money. hyperinflation is the end result.
Anyone who thinks that the taxpayer can escape the commitments made by their representatives are fooling themselves. In the final analysis, you won't save a dime by failing to honor your commitments. This issue is all about cost shifting. Those who eventually pay may not pay in dollars, but they will pay. These problems serve to highlight how important it is to determine priorities in advance of commitments. For example, which commitment should have a higher priority: education at the primary and secondary levels or purchase of 2500 plus of unneeded, unwanted F-35 fighter jets. I use this as an example, because in that one purchase there is enough tax dollars to solve all of the teacher pension problems in all of the U.S. It is a matter of priorities. A great nation will have its priorities in order.
it hasn't happened yet with the states or local governments. you will see it when the federal government guarantees their debt. argentina collapsed when the central gov't guaranteed the debt of their provinces. "Where have you been for the last 5 years?" it is not worth imagining.
of course, as if the students coming out of the chicago system are stellar performers. teacher salaries deserve to be cut in half for their miserable performance which is akin to being overpaid, glorified baby sitters. e.g. 20% of 8th grade students read at grade level. cry me a river for these people who would have great difficulty getting a job in the private sector, even in good times.