Lawyer warns of 60 percent pension cuts in Stockton bankruptcy case

[Newsjock]

Source: Associated Press

Employees of the bankrupt California city of Stockton could be forced to take a 60 percent pension cut if a federal judge rejects its reorganization plan, a lawyer for the city said Wednesday in a case that could clarify who gets paid first by financially strapped cities around the nation -- retirement funds or creditors.

The contention by Stockton attorney Marc Levinson came during arguments at a hearing in the bankruptcy case in Sacramento.

Much of the case centers on whether Stockton's payments to the California Public Employees' Retirement System are off limits to creditors as the city tries to end its Chapter 9 protection.

A key creditor, Franklin Templeton Investments, says the pension payments are fair game as it tries to collect on an unsecured $32.5 million claim against the city.

Read more: http://www.mercurynews.com/california/ci_26643087/lawyer-warns-60-percent-pension-cuts-stockton-bankruptcy

[NYC_SKP]

1. If this is pulled off, the Republicans will cite it as a reason to require personal investments.

As if they're any safer.

Amazing, worker's retirement savings are fair game when the city goes under?

WTF?

[valerief]

2. 60% is not a "haircut." nt

[blkmusclmachine]

3. Newest scam/racket.

[Earth_First]

4. Had enough yet?

Detroit, Stockton, Harrisburg, San Bernadino.

...among nine others.

At what point do so many individuals on retirement and pension plans ask "am I next?"

So far as the majority is insulated from these incidents, little will be done from the public's perspective until they are next.

It's a symptom of "I've got mine..." and until we can collectively resist this from happening further, it's going to get worse.

Until they are next.

Then what...

Act now, folks!

[The Jungle 1]

5. Unions

Wonder why when the unions run the pensions they never go belly up?????

Construction unions figured out long ago that they were way better off controlling and investing the money.

This is a nation wide scam and Pa. is next.

[greatlaurel]

8. Ohio will declare the pension systems bankrupt shortly after that crook Kasich is reelected.

They are already planning how they are going to rob the pension systems to finance King John's run for POTUS in 2016. Wall Street will back him all the way.

[24601]

10. You can go the the PBGC website and browse the plans that have been taken over by the

trustees. As I read them, union run plans are included. http://www.pbgc.gov/wr/trusteed/plans/

Even more troubling is the March 2013 GAO report (http://www.gao.gov/products/GAO-13-240) that points out 25% are headed towards insolvency and the number is going up.

What was your source that union plans aren't in trouble?

[groundloop]

6. I bet the lawyers and investment bankers won't be hurting

To hell with the average worker, gotta' protect the investment bank though.

[Le Taz Hot]

7. The real tragedy that few seem to be talking about

is that investment in PERS excludes the person from paying into Social Security so these guys are getting 60% of their ENTIRE pension cut. I know there are exceptions to this but there will still be a significant number of people -- in the thousands, in which PERS was their only retirement fund.

[BrotherIvan]

11. You are correct

It's going to be just awful. My mother retired as a teacher will full CalPERS pension pay until she died. If her pension had been cut 60% I don't know what we would have done. This is an absolute crime and I wish someone could stop it.

[Fiendish Thingy]

14. Your mom must have been in CalSTIRS

Which is the teacher's equivalent of PERS

[BrotherIvan]

15. Yes, she was

But she also received long term health care benefits from CalPERS that she had paid into. I wish everyone is this country could receive the pension and benefits she did. Taking the pensions away from people who worked for them and stayed in their jobs for that very purpose is sick.

[Fiendish Thingy]

13. Not necessarily true

I am a CalPers retiree, worked for a county, and am eligible, like my co-workers, for both my pension and SS. it is generally the state employees, I believe, who don't pay into SS and can't claim benefits.

[Cal Carpenter]

9. Stealing working people's future for fucking banks

Stealing pensions, stealing any possible sense of security in old age from working people, to pay a fucking bank is a prime example of the nasty depths to which capitalism takes us.

Blood from a stone, man, that's all that's left.

Sick, sick shit. And it's going to happen in more and more places.

[BrotherIvan]

12. Yes

Banks were bailed out but cities and states weren't, so now they are declaring bankruptcy because the same fuckers we bailed out are now calling in their chips. They are the Golem of our system's making and they're coming to get it all.

Who could have possibly known?