There are many well managed and properly funded pensions. When revenues to fund pensions disappear, underfunded pensions and growing pension liabilities emerge.  Not far behind are policy and legal issues. As we all know, legal issues mean lawsuits. A California federal bankruptcy judge opened the door to loosen the sanctity of pensions. 

 

The bankruptcy court dealt a blow to CALPERS. CALPERS wanted to be treated like a creditor when the Stockton pension crisis left the Calpers system because of Stockton’s bankruptcy. The Judge doesn’t view CALPERS as a creditor.  The judge’s determination mirrors how pensions were treated by the courts in Detroit’s bankruptcy. Judicially consistent, but a burden on the CALPERS system.  [NYT (DealB%k)]