In the final quarter--a rough estimate--of my working career, I occasionally experienced some degree of regret over not having a fixed benefit retirement program in my future. The absence of such a vehicle for the ride into the great beyond was the result of working for employers, who did not have such an item in their fringe benefit package, and having a work career that coincided with significant changes in retirement plans. Now that I am enjoying the benefits of a personal retirement strategy coupled with Social Security, I can breathe a sigh of relief in what appears to be a greater sense of security in individual retirement plans than in fixed benefit plans found in private industry and governmental employment. It is not that what was less secure that has  now become more secure; it is what was more secure has become even less secure than that which was previously less secure.

A federal court decision in the case of Detroit, Michigan, underscores my point. The judge decided that federal bankruptcy laws override pension program rules, negotiated contractual terms, and state constitutional and legislative language which was intended to protect the integrity of these programs. I am sure this decision will be appealed, so the final chapter has not been written. In the meantime, folks relying on such retirement programs must find themselves experiencing a certain level of anxiety. There are enough units of government facing bankruptcy and reorganization that retirees of the City of Detroit will not be alone for long.

When AIG was facing bankruptcy, the Federal government decided they needed to step in and save this nongovernmental corporation and that the annual bonuses had to be paid to those managers, whose decisions were responsible for the impending failure of the firm, because bonuses were part of their employment contracts. The commentator that made that observation also asked: How are retirement contracts different? Are retirement contacts not employment contracts? The question that I ask is: How do we decide what is good for GM and AIG is not good for Detroit? Some will say that we can't afford to bail out Detroit. How is it that we are able to afford the estimated 32.9 billion dollars that it will cost to bail out AIG?

As the bankruptcy of the City of Detroit plays out over the next several years, I can assume the stance of a curious bystander. Any dog that I might have in the fight as Detroit and additional governmental units pursue similar resolutions to their financial problems will be a small dog reflecting my personal, diversified portfolio. I just need to make sure that I am not relying on a Bernie Madoff act-a-like to manage my nest egg.