Detroit’s bankruptcy has underscored the importance of a well-funded government pension plan. Even though a 2011 Boston College Center for Retirement Research study found that most state and local retirement plans are fiscally solvent, a few large cities, including Chicago, Philadelphia and Providence, R.I., have significantly underfunded plans and will likely have to take extraordinary measures to remain solvent. Pension contributions comprise a relatively small portion of state and local operating budgets. In fact, approximately...