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Pension and Welfare
Judge approves Stockton bankruptcy plan; worker pensions safe
Judge approves Stockton bankruptcy plan; worker pensions safe

A federal bankruptcy judge approved the city of Stockton’s bankruptcy recovery plan, allowing the city to continue with planned pension payments to retired workers. The case was being closely watched after the judge ruled this month that the city’s payments to the California Public Employees’ Retirement System could be cut in bankruptcy just like any other obligation. If Judge Christopher M. Klein had rejected Stockton’s plan and forced the city to slash its payments to CalPERS, it could have opened the door for other cities struggling with escalating pension costs to follow suit. Stockton officials had argued that they couldn’t afford to cut pensions or to...

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