Posts Tagged: cutting
A view of downtown Stockton. (Photo: Wikimedia Commons)
Calpensions: A federal judge ruled last week that Stockton’s CalPERS pensions can be cut in bankruptcy. But Stockton does not want to cut pensions, and the lone holdout creditor says it can be paid without cutting pensions. U.S. Bankruptcy Judge Christopher Klein may have clarified the legal issue of whether CalPERS pensions, widely regarded as untouchable, can be cut if any of the 1,581 local governments in the giant system take the drastic step of bankruptcy.
But a series of state court rulings are widely believed to mean that the pension offered current workers on the date of hire becomes a vested right, protected by contract law, that can only be cut if offset by a new benefit of comparable value. Santa Clara County Superior Court Judge Patricia Lucas said in her ruling the question before her court is “one of law, not of policy,” referring to a state Supreme Court response to city and county briefs on an Orange County attempt to cut retirement costs.
Moves may allow bankrupt city to avoid pension fight
Recently California’s clean energy and pollution law, AB 32, observed its first auction of pollution permits. Much has been said about the impact of this auction on California’s economy, with competing interests making differing claims.
As economists and academics, we believe the auction and AB 32’s carbon market will help California meet its environmental