Calif. Pension Overhaul Won’t Save Cities From Ch. 9

Law360, San Diego (September 12, 2012, 10:20 PM EDT) -- Reforms signed into law by California Gov. Jerry Brown on Wednesday aimed at reining in tens of billions of dollars in public pension costs won't come soon enough for the state's many struggling cities, which are likely to continue to resort to Chapter 9 or prebankruptcy negotiations in order to obtain relief from skyrocketing pension costs for current employees.

The governor hailed the measure as “sweeping bipartisan pension reform,” but A.B. 340 is focused primarily on making changes for public employees who are hired starting in...
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