Oct. 2, 2014

Issue #92

Editor's Note

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Judge Rules Public Employee Pension Contracts May Be Reduced in Chapter 9 Bankruptcy Proceedings Just Like Other Contracts

On Oct. 1 U.S. Bankruptcy Judge Christopher Klein in Sacramento ruled from the bench that as a matter of federal law the pension agreements between the city of Stockton and CalPERS could be modified in Chapter 9 municipal bankruptcy proceedings. The ruling is based on the legal principle that the U.S. Constitution grants exclusive authority to Congress over bankruptcy matters and that federal bankruptcy laws preempt a state statute enacted in 1982 to prevent just this result.

Pension Reform, Legal

Mathur Named Preliminary Winner of CalPERS Board Election With Disappointing Turnout

Preliminary election results were announced Wednesday for the California Public Employee Retirement System (CalPERS) Board of Administration elections. With a disappointing turnout of only 6.8 percent (16,796 of close to 250,000 eligible voters of public agencies), unofficial numbers tabulated by CalPERS show that incumbent Priya Mathur captured 9,299 votes (56 percent) and her challenger, Leyne Milstein, Sacramento Director of Finance, received 7,497 votes (44 percent). The election occurred between Aug. 29 and Sept. 29. The California Secretary of State has yet to release formal certification of the results.

Pension Reform, Elections
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