CalPERS Says "Real Precedent" in Pension Ruling is That Cities Can Make Smart Decisions Like Stockton
October 1, 2014
External Affairs Branch
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
SACRAMENTO, CA - The California Public Employees' Retirement System (CalPERS) issued a further statement today from its General Counsel Matthew G. Jacobs following the decision by Federal Bankruptcy Court Judge Christopher Klein that public pensions can be impaired in bankruptcy proceedings:
"The real precedent of today’s proceedings is that even if municipalities are allowed to impair pensions in the rare situation of bankruptcy, cities like Stockton can make the smart decision to protect the pension promises for their public employees. The City of Stockton has always said it values its relationship with CalPERS and values pensions for its employees. The City has made a choice to protect pensions for its public employees and find a reasonable path forward to a more fiscally sustainable future. This is the right decision. While we disagree with today’s ruling on pensions, we are hopeful that Judge Klein will approve Stockton’s plan. Providing great services to a city requires great employees and Stockton said today in court that it can’t function as a city if pensions are impaired."