The Sacramento Bee/Business/Dale Kasier, 12/4/13. "Bankrupt Detroit can cut pensions; implications big for California>"
| The nice pension was great! |
".... In a case with major implications for California, a judge in Michigan
ruled that the bankrupt city of Detroit can impose cuts to its
municipal pension plans.
The ruling comes as a bankrupt California city, San Bernardino
edges closer to a possible legal showdown with CalPERS over the
sanctity of public employee pensions. Although the decision in Detroit
doesn’t directly affect what happens in San Bernardino,
legal experts said it will strengthen the California city’s hand as it
tries to reduce its multimillion-dollar pension obligations.
.... In any event, the Detroit ruling was a milestone. Experts long suspected
that cities could use bankruptcy to force reductions in their pension
expenses, but until now they’ve never had a court’s blessing. ...." Read article.
Note: photograph from Daily Mail, UK, "We're all living longer. "
Submitted by Bob Hutchinson
Posted by Kathy Meeh
2 comments:
Private union pensions that are vested can be cut so why shouldn't public employees enjoy the same privilege? These outrageous liabilities can not be sustained. Pacifica has already floated one 20 million dollar bond to pay Calpers, and they are getting ready to ask for more. We need to say no. If they can't pay the pensions they need to reduce them.
Get real! Catch up has begun. Parteee time! CA has a budget surplus and we are a democrat run state. Love those unions. Pacifica is a pimple on the state's backside. We missed the chance to make cuts and now we'll miss the improving economy. But those salaries will grow. Bet on it.
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