Before the idea gains traction, those who take fiscal responsibility seriously ought to clarify why a federal bailout of state pensions is a terrible idea. For starters, it would reward and promote fiscal malfeasance at the expense of states with relatively prudent pension management.

Thankfully, ALEC and the Illinois Policy Institute have shown leadership in this area, and here is a recent press conference from them on the matter. For a breakdown of associated research, please see my Fiscal Insight, “No Pension Bailout!