Judge OKs Stockton’s Bankruptcy Exit Plan
On Thursday, U.S. Bankruptcy Judge Christopher Klein approved a bankruptcy exit plan from the city of Stockton that would fully fund pension payments for public retirees but reduce its payments to bond investors. One month ago, Klein said the city could legally cut its pension obligations, but city officials said reducing pension payments would cause public employees to leave the city.
- "CalPERS Prevails in Judge's Ruling on Stockton Bankruptcy" (Young, Sacramento Business Journal, 10/30).
- "Judge Approves Stockton's Plan To Repay Creditors, Leaving Pensions Intact" (Kasler, Sacramento Bee, 10/30).
- "Stockton, California, Workers Relieved as Judge Ruling Secures Pensions" (Respaut, Reuters, 10/31).