Via: Baltimore Sun

Baltimore fire and police unions filed suit against the city in federal court Thursday citing that they “knowingly underfunded” their pension plan over the past decade, ignoring the advice of financial experts hired by the city.

If officials do not make drastic changes to the pension system by July 1, the city will owe $65 million that it cannot afford to pay.

The proposed changes to the pension plan would violate the unions’ contracts.

Many police and firefighters have threatened to resign or retire if their benefits are greatly diminished. The city said they can only afford to pay $101 million of the $166 million they are obligated to pay.

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