Municipal governments need to cut pensions if that will keep them solvent over the long haul. This does not mean to drastically cut pensions tomorrow, but when cut backs need to be made, pensions need to part of the overall picture of cuts, over time, in order to make sure the pension funds can survive the next 50-100 years.
Those retiring in a year or two should be given their pensions if at all possible. But starting with those behind them, the pensions do need to be cut because they were promised at too high a rate for the municipal government to make good on and new hires should definitely be given realistic scenarios.
Pensions may have been a big drawing to some of these positions in the municipal government, but it has become obvious that these pensions are not sustainable. Municipal governments should move over to 401(k) plans which eliminate the cost and pooling of money, that is required by pensions. We shouldn't be offering benefits, we can't afford.
Yes, municipal governments should cut pensions, because that would keep the governments in sound financial shape. The people who work for the government are already paid more than market value for their services. They do not need to have a lavish pension on top of it. They can cut back like the rest of us.