The first major city pension fund to strike out is likely to be Pittsburgh, according to The Bond Buyer.

Mayor Luke Ravenstahl was counting on a 50-year lease of city parking garages to raise $452 million, with most of that money going to fill the pension fund. But that plan has been rejected by city council, according to Pittsburgh Tribune Review.

Now the state will proceed with plans to take over the city fund and it won't be pretty.

State management could force the city to make $30 million more in annual payments into the fund, leading to severe cuts in city services or higher taxes, Ravenstahl claims. Obviously it could also lead to cuts in benefits.

Ravenstahl says: "The reality won't be pretty. It's indisputable that this will be painful and extremely difficult."

Now check out the next 10 city pensions that will run out of money >