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Pension and Welfare
Different pension rulings expected in Stockton, Detroit bankruptcies
Different pension rulings expected in Stockton, Detroit bankruptcies

Stockton employees and retirees avoided pension cuts when a federal judge last week approved the San Joaquin Valley city's plan to emerge from bankruptcy. U.S. Bankruptcy Court Judge Christopher M. Klein opted to protect pensioners' payouts despite ruling earlier that Stockton, population 298,000, could break a contract with the California Public Employees' Retirement System. But that doesn't mean that municipal employees — in California and across the country — have nothing to worry about if their governments seek protection from creditors. All they have to do is look to Detroit, the nation's biggest town to go bust, to see what could happen to...

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