| This is just horrible: Analysts from Moody's Investor Services, a bond rating firm, said that Wednesday's ruling by a federal judge considering Stockton's bankruptcy case could open the door for cities to cut retirement obligations -- once considered sacrosanct. In that ruling, Judge Christopher Klein said cities could walk away from their pension obligations -- just as they can from other debts. [...] The judge agreed with Franklin that the federal bankruptcy code -- which treats creditors equally --superseded California laws that say cities cannot reduce amounts that CalPERS collects for pensions promised to workers in labor agreements. We are talking here about pensions that are instead of, not in addition to, Social Security: This week in the war on workers: Bankruptcy judge calls for impoverishing retirees |
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