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Pension and Welfare
Stockton bankruptcy ruling preserves city pensions
Stockton bankruptcy ruling preserves city pensions

A federal bankruptcy judge approved the city of Stockton's bankruptcy recovery plan Thursday and sidestepped challenges to its workers' pensions that could have threatened municipal retirement plans across the state in the years ahead. Stockton's plan slashes city spending, cuts salaries and eliminates jobs — but preserves worker pensions. Also, companies owed money by the city will get back only a fraction of what they're due. 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...

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