They are already bankrupt

The Register: Actuaries for the Public Employees Retirement System paint a grim picture of the next half-dozen years: State and local governments will have to increase their contributions to the pension system by an amount equal to about 4 percent of total payroll costs next year, and again in 2019, and again in 2021. Those increases will absorb most or all of the money otherwise available for pay raises for current employees, or for improved public services. PERS is squeezing everything, testing the Legislature’s ability to act.
 In the current biennium, according to PERS, payroll costs for all governments enrolled in the pension system — school districts, cities, counties and state agencies — totalled $19 billion. An additional $2 billion will be contributed to PERS. In 2017-19, payroll costs will rise an estimated 7 percent, while PERS contributions will climb 44 percent to $2.9 billion.
 Here’s another way to put it: Over the next two years, state and local governments will spend an additional $1.3 billion on everything that counts as payroll: teachers in the classroom, cops on the beat, nurses in the clinic, and for any raises or benefit enhancements these people receive. In that same period, those same governments will pay an additional $885 million to cover pension obligations. Of all the additional resources available to government during the next biennium, 41 percent will go to PERS.
John Thomas of Eugene, a benefits consultant who is chairman of the PERS board, told The (Portland) Oregonian that no one should expect a Wall Street miracle. “This is not a situational problem that is going to go away if returns spike a bit,” he said. “It’s a systemic problem. ... Everything is predicated on a linear 7.5 percent investment return, and that has not been sustainable.”

Bankruptcy results.  The bureaucrats  c an't fix the problem, doing so costs them their jobs.