Back Home About Us Contact Us
Town Charters
Seniors
Federal Budget
Ethics
Hall of Shame
Education
Unions
Binding Arbitration
State - Budget
Local - Budget
Prevailing Wage
Jobs
Health Care
Referendum
Eminent Domain
Group Homes
Consortium
TABOR
Editorials
Tax Talk
Press Releases
Find Representatives
Web Sites
Media
CT Taxpayer Groups
 
Home
Stockton ruling says pensions can be cut in California bankruptcy

 

 

 

 

Stockton bankruptcy ruling a blow to pensions - LA Times

 

 

The city of Stockton, which filed for bankruptcy protection two years ago, owes the California Public Employees' Retirement System more than $15 million this year.

(Luis Sinco, Los Angeles Times)

 

 

By Chris Megerian and Melody Petersen  Oct 1, 2014

 

 

SACRAMENTOA federal bankruptcy judge dealt a blow to California's public employee pension systems by ruling Wednesday that payments for future worker retirements can be reduced when a city declares bankruptcy — just like its other debts.

 

In a ruling while considering the city of Stockton's bankruptcy, Judge Christopher Klein said, "California public employee retirement law … is simply invalid in the face of the supremacy clause of the United States Constitution."

"I've concluded the pension could be adjusted," he added.

 

But the judge stopped short of making a final decision about whether to accept Stockton's bankruptcy plan for repaying its debts, which does not include cuts to pension payments. The next court date is scheduled for Oct. 30.  Continue reading at ….. http://www.latimes.com/business/la-fi-stockton-bankruptcy-20141002-story.html

 

 

 

Click to read more headline news on this subject: 

 

http://www.latimes.com/business/la-fi-stockton-bankruptcy-20141002-story.html

 

With more cities facing financial troubles, the ruling could have broad implications

 

Stockton owes the California Public Employees' Retirement System more than $15 million this year

 

Stockton said it could not pay more than 1% of the $32 million it owes Franklin Templeton Investments