Thursday, December 5, 2013

Detroit bankruptcy ruling could affect CalPERS pensions in the future

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


Anonymous said...

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.

Anonymous said...

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.