U.S. judge rules against Calpers on San Bernardino

Reuters ^ | 12/21/12 | By Jonathan Weber and Tim Reid

[Be Careful]

(Reuters) - A U.S. bankruptcy judge ruled on Friday against an attempt by the California Public Employees Retirement System to bypass the bankruptcy court and collect overdue pension payments from the bankrupt city of San Bernardino.

The decision, while only one step in a highly complex legal proceeding, was a blow to Calpers' argument that pension payments and California law should take precedence in a bankruptcy.

[onedoug]

CALPERS ping....

[JustTheTruth]

Hope this is upheld. If not, then ultimately the vastly under-funded pension crisis can take primacy over everybody else (as our national debt bubble deflates through non-performance of loans/bonds). The governmental pension system is such a farce; actuaries continue to pretend that those funds can earn 7% per year into perpetuity, when in reality they’ve earned next to nothing for the past decade or more, overall... Politicians will continue to play financial musical chairs until they drop...