Home > News > News Articles > 2014 > October > Bill Lockyer Predicts Loss of Chapter 9 Protection for Municipal Agencies
News Feed

Bill Lockyer Predicts Loss of Chapter 9 Protection for Municipal Agencies

State Treasurer Makes Case at the Bond Buyer Conference in San Diego

October 10, 2014
State Treasurer Bill Lockyer gave his final keynote address at the California Debt and Investment Advisory Committee on Wednesday in San Diego.
 
The meeting occurred before the start of the Bond Buyer’s Public Finance Conference and the treasurer chose the occasion to comment on last week’s ruling by U.S. Bankruptcy Judge Christopher Klein in the city of Stockton mater that CalPERS pensions can be altered through Chapter 9 bankruptcy.
 
Lockyer questioned whether the state’s pension system can legally be subject to bankruptcy proceedings and expressed his opinion that an effort may ensue to lobby the Legislature to pass legislation to prohibit a municipality from seeking bankruptcy through Chapter 9.
 
Treasurer Lockyer’s remarks were reported by The Bond Buyer on Oct. 8.


 
© League of California Cities