San Bernardino OKs $26M In Cuts, CalPERS Payment Deferral

Law360, New York (November 27, 2012, 4:52 PM EST) -- The bankrupt city of San Bernardino, Calif., would defer payments to the state pension fund and bondholders and cut spending by $26 million under a pendency plan the city council approved Monday.

In a 5-2 vote, the council agreed to present the 12-page plan to a bankruptcy judge to help alleviate its nearly $46 million deficit, the city clerk’s office confirmed.

The plan includes $26 million in reductions to salaries and other benefits for city employees and the deferral of almost $35 million in payments to...
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