Stockton’s Chapter 9 Bankruptcy as it Relates to CalPERS Relationship
by ACS Quantum Design on October 14, 2014
posted in Municipal Bankruptcy,
Municipalities facing apparently insurmountable financial obstacles have been keeping a close eye on the City of Stockton as it weaves its way through Chapter 9 bankruptcy. On October 1, 2014, Bankruptcy Judge Christopher Klein made a ruling from the bench that changes the landscape of Chapter 9 bankruptcy as it relates to pension liabilities. Specifically, Judge Klein addressed the constitutional question of whether federal bankruptcy law trumps California law which states that money owed to the state pension fund (CalPERS) must be paid. Judge Klein ruled that it does. However, the ... Continue Reading
