October 1, 2014

External Affairs Branch
(916) 795-3991
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs

SACRAMENTO, CA - The California Public Employees' Retirement System issued this statement in response to a federal bankruptcy judge ruling that pensions can be impaired in bankruptcy proceedings. Additional statements will be issued when the judge concludes today's proceedings.

We disagree with the Judge’s opinion on the issue of pension impairment. This ruling is not legally binding on any of the parties in the Stockton case or as precedent in any other bankruptcy proceeding and is unnecessary to the decision on confirmation of the City of Stockton’s plan of adjustment. CalPERS will reserve any further comment until such time as the court renders its final written decision. What’s important to keep in mind is what the City of Stockton stated in court today: that they can’t function as a city if their pensions are impaired.

Issued October 1, 2014 at 3:15 p.m.