|Oct. 2, 2014
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Judge Rules Public Employee Pension Contracts May Be Reduced in Chapter 9 Bankruptcy Proceedings Just Like Other ContractsOn Oct. 1 U.S. Bankruptcy Judge Christopher Klein in Sacramento ruled from the bench that as a matter of federal law the pension agreements between the city of Stockton and CalPERS could be modified in Chapter 9 municipal bankruptcy proceedings. The ruling is based on the legal principle that the U.S. Constitution grants exclusive authority to Congress over bankruptcy matters and that federal bankruptcy laws preempt a state statute enacted in 1982 to prevent just this result.
Pension Reform, Legal
Pension Reform, Elections
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