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.