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Stockton bankruptcy ruling will decide fate of public pensions
Stockton bankruptcy ruling will decide fate of public pensions

In a closely watched case, a federal judge on Thursday is expected to decide whether the bankrupt city of Stockton can continue to pay employees generous pensions that soon could consume one-fifth of municipal revenues. The ruling has been much anticipated since U.S. Bankruptcy Judge Christopher M. Klein recently said that California's rich and powerful public pension system should be treated like all other creditors — with no special protection. His comments stunned state and local officials and public employee unions, who had long considered pensions untouchable, even in bankruptcy. But Thursday's ruling may not be as far-reaching as the judge hinted. Despite his...

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