Don't Touch Government Pensions Judge Says In Stockton Ruling

As public pension funds face underfunding problems across the country, all eyes in the pension fund community kept one eye on results from Stockton, California’s plan to shortchange bond investors while shielding public pensions.

Stockton to pay bond investors pennies on the dollar

The court ruling allows the bankrupt city in the shadows of Los Angeles to pay bond investors pennies on the dollar while keeping intact pension plans for its public employees. “This plan, I’m persuaded, is the best that could be done in terms of restructuring the city’s debts,” U.S. Bankruptcy Judge Christopher Klein was quoted by Bloomberg as saying at a hearing today in the state capital.