Historic decision looms in Stockton bankruptcy; can CalPERS pensions be reduced?
By Dale Kasler, The Sacramento Bee | |
McClatchy-Tribune Information Services |
After months of buildup, U.S. Bankruptcy Judge
At a
It's not at all certain whether
Regardless of what
"Pensions secure financial futures and help the state and its local subdivisions recruit and retain valuable public servants," CalPERS' lawyers said in a recent court filing. "Putting a cloud over public pensions only invites worry and uncertainty about the security of those pensions."
Public pensions have been considered ironclad for generations. State legislatures are free to reduce benefits for new workers, as
Those legal protections, however, have been under duress ever since
Ultimately, most bond creditors settled with the city for upwards of
The
"The bankruptcy code affords no preferential or exalted position" for pension liabilities, Franklin's lawyers said in a recent court filing.
City officials defend their decision to hold CalPERS harmless, saying workers have already endured their fair share of pain in the
In
CalPERS, however, said the
Separately, CalPERS has tentatively settled with
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