CalPERS Slams San Bernardino Over 'Sham' Pendency Plan

Law360, Los Angeles (December 17, 2012, 10:23 PM EST) -- The city of San Bernardino, Calif., should be declared ineligible for bankruptcy relief, the California Public Employees' Retirement System said in court papers Friday, calling the city's pendency plan a “sham” that confirms its bankruptcy petition was not filed in good faith.

CalPERS, the city's largest unsecured creditor, argued that the 19-month plan — which would defer almost $35 million in payments to the state pension fund to help alleviate the city's nearly $46 million deficit — “is not a plan at all” and heightens the...
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