&gt;This used not to be a problem when pension benefits were shifted to the public sector (which doesn&#x27;t have a solvency problem by definition).<p>There is no definition of public sector that makes bankruptcy impossible.<p>Pre-funding is about honesty of the obligations.  If you say you&#x27;re going to pay the workers $X at time t, apportion the money <i>now</i>. Put your full faith and credit behind it <i>now</i>.  Make it so you can only renege by reneging on bonds in general.<p>It&#x27;s mind-boggling how ostensibly pro-worker advocates are okay with the mentality of, &quot;don&#x27;t worry, we&#x27;ll find your pension money later, if Congress appropriates enough down the road&quot;.