Bankruptcy Judge Ruling Shakes Pension Protections, CalPERS Comes Out Against Ruling
On Wednesday, U.S. Bankruptcy Judge Christopher Klein ruled that cities that declare bankruptcy can reduce payments for future workers' retirements, similar to how it handles other debts. Observers say the ruling could jeopardize CalPERS pension protections. However, CalPERS issued a statement saying that the ruling is not legally binding and does not set a precedent for future cases.
- "Stockton Bankruptcy Ruling Could Remove CalPERS Pension Protections" ("California Report," KQED, 10/1).
- "Stockton Bankruptcy Ruling Could Deal Blow to CalPERS, Public Pensions" (Megerian et al., Los Angeles Times, 10/1).
- "Bankruptcy Judge's Big Ruling: Pension Contracts Not Sacrosanct" (Adler, "KXJZ," Capital Public Radio," 10/1).