RIVERSIDE — A federal judge last week rejected a CalPERS request to sue bankrupt San Bernardino for a growing unpaid bill, but gave preliminary support to the argument that the bill must be paid in full before the city can leave bankruptcy.
The widely watched question of whether the bankruptcy will reduce pensions promised
CalPERS accuses San Bernardino of halting payments to the big pension fund in a plan to use bankruptcy to cut pensions owed workers. But the city says it’s simply unable to pay now and wants to work out a way to repay CalPERS over time.
A federal bankruptcy court in Riverside is scheduled tomorrow
The Antioch city council is scrambling to reverse previous pension cuts before a statewide reform takes effect Jan. 1, an attempt to aid the recruitment of experienced police officers from other cities.
The reform pushed through the Legislature by Gov. Brown imposes a uniform lower pension formula for new hires. Unions no longer will
The CalPERS board may make it more costly for struggling local governments to close their pension plans.
A pending change is driven in part by unusually low interest rates and the fear of an unlikely, but now not inconceivable, collapse of a large employer like the bankrupt city of San Bernardino.
The cost
Signature gathering began last week for an initiative to switch new hires of California’s largest city from pensions to a 401(k)-style plan, a change begun in the second largest city, San Diego, after voters approved a similar initiative in June.
Former Los Angeles Mayor Richard Riordan, who has warned the city is sliding toward