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San Bernardino, which went into Chapter 9 bankruptcy in August, is not making its regular contribution to the California Public Employees' Retirement System (Calpers) according to a story in today's (Oct. 22) Wall Street Journal. An official told the Journal that Calpers was no different than any other creditor. But Calpers says the city's move violates state law. Two other bankrupt California cities, Stockton and Mammoth Lakes, are still contributing. Joe Nation, Stanford professor who follows pensions closely, says San Bernardino's move is "truly groundbreaking," and other cities might do the same.
San Bernardino, which went into Chapter 9 bankruptcy in August, is not making its regular contribution to the California Public Employees' Retirement System (Calpers) according to a story in today's (Oct. 22) Wall Street Journal. An official told the Journal that Calpers was no different than any other creditor. But Calpers says the city's move violates state law. Two other bankrupt California cities, Stockton and Mammoth Lakes, are still contributing. Joe Nation, Stanford professor who follows pensions closely, says San Bernardino's move is "truly groundbreaking," and other cities might do the same.