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Stockton bankruptcy ruling could deal blow to CalPERS, public pensions
Stockton bankruptcy ruling could deal blow to CalPERS, public pensions

A federal bankruptcy judge dealt a serious 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. U.S. Bankruptcy Judge Christopher Klein ruled that bankruptcy law supersedes California pension laws that require cities to fund their workers' future retirement checks. "I've concluded the pension could be adjusted,” Klein said. But he stopped short of making a final decision on whether to accept Stockton's bankruptcy plan, which does not include cuts to pension payments. The next court date is scheduled for Oct. 30. ...

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