Stockton bankruptcy ruling a blow to pensions

[unhappycamper]

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



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.

Stockton bankruptcy ruling a blow to pensions
Chris Megerian and Melody Petersen
10.1.2014

SACRAMENTO — A 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.

[Faux pas]

1. Is this a new way to rob the pension funds?

Drive the city/state/country into bankruptcy and give the leftovers to wall street? Hmmm