Bankrupt San Bernardino Gears Up For CalPERS Face-Off

Law360, San Diego (October 17, 2012, 10:20 PM EDT) -- San Bernardino, Calif.'s bid to defer millions of dollars in payments to the California Public Employees’ Retirement System is setting the stage for a major legal battle over whether obligations to the nation's largest public pension fund can be impaired in bankruptcy, and a ruling in the city's favor may encourage more municipalities to file for Chapter 9, experts say.

Since July 31, San Bernardino has postponed making several payments totaling nearly $5.3 million to CalPERS in an effort to meet payroll obligations and provide essential...
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