"There are a number of options, ranging from a gradual transition from pensions to 401K plans, to an EFM simply canceling pension plans with contract terminations. The best solution probably lies somewhere in the middle, but this is a crucial element to any fiscal restructuring."

Any plan involving a transition to 401ks will actually cost the city more in the short-term. It might save dollars in the long-term but won't help the city's current cash crunch.

Pension benefits are protected by the state constitution. An EFM doesn't have the authority to cancel existing pension benefits.