January 3, 2013
MORE ON THOSE UNDERFUNDED / OVER-GENEROUS PUBLIC PENSIONS: Calpers Seeks to Sue San Bernardino Over Pension Payments. “The California Public Employees’ Retirement System is seeking to sue bankrupt San Bernardino over missed pension payments, the second potentially precedent- setting fight the fund picked with a California city this year. San Bernardino can’t use U.S. bankruptcy law to justify its failure to make at least $5 million in payments, Calpers, the biggest U.S. public-employee pension fund, said in court papers filed Nov. 27. The motion relies on arguments the fund is also making in the bankruptcy of Stockton, California, and may be a warning to other cities struggling with high pension costs, said James E. Spiotto, a bankruptcy attorney and partner at Chapman & Cutler LLP in Chicago.”
It’s also a warning to anyone thinking of loaning those cities money.