U.S. Bankruptcy Judge Rules San Bernardino Is Eligible for Bankruptcy; Pension Benefits Could Be Affected
Last week, a U.S. bankruptcy judge ruled that the city of San Bernardino is eligible for bankruptcy. In the coming weeks, city officials will negotiate a payment plan with CalPERS and other creditors. Experts say that San Bernardino is expected to develop a plan that would reduce the amount of money paid to CalPERS, which would result in lower pension benefits for retirees and current employees.
- "San Bernardino Bankruptcy Ruling Is a Blow to CalPERS" (Kasler, Sacramento Bee, 9/4).