The Senate Finance Committee's top Republican said Wednesday that Detroit's bankruptcy filing and Chicago's pension problems illustrate the need for legislation he has proposed that would allow state and local governments to turn to move from defined benefit plans to life insurance company annual annuities.

Sen. Orrin Hatch, R-Utah, said in a CNN opinion piece, that Detroit's bankruptcy filing was caused in part because it has "$9.2 billion in retiree health care and pension commitments that it simply cannot afford."

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