Stockton Bankruptcy Ruling Could Remove CalPERS Pension Protections

When a California city goes bankrupt, its employees' pensions are off limits to creditors. But a federal judge overseeing Stockton's bankruptcy could upset that standard. Chief Judge Christopher Klein is expected to rule Wednesday on whether Stockton's pension debt can be treated like any other debt on the city's books. If Judge Klein decides it can, public employees' pensions in the California Public Employees' Retirement System (CalPERS) could become vulnerable to creditors.