the unionists have no problem threatening to strike if they don't get a contract giving them inflated undeserved pensions for doing a pizz poor job and i have no problem if they don't get them, so we're even...
Posted on 10/21/2014 1:59:55 PM PDT by ThethoughtsofGreg
Recently, U.S. Bankruptcy Judge Christopher Klein ruled that the city of Stockton, California could reduce the amount it was obligated to pay in pension costs and could even leave the state’s retirement system (CalPERS). The significance of this decision is difficult to overstate. Pensions were long thought to be absolutely sacrosanct and unable to be cut, even in bankruptcy, especially since pension obligations are specifically protected under state law. Judge Klein’s ruling has highlighted the fact that political promises must bend to the reality of numbers.
The impetus for this ruling was another creditor of the city of Stockton that, under the city’s plan, was to be paid pennies on the dollar for an investment, while CalPERS was set to receive no cuts. This kind of precedent could have devastating effects throughout the municipal bond market since it would allow other types of creditors to take all the payment reductions during bankruptcy while preserving pension funds. In his ruling, Judge Klein noted that even though pensions enjoy some protected status under California state law, these rules do not necessarily apply when a city is under federal bankruptcy protection. This ruling should be a wake up call for cities like Chicago that are awash in red ink due to skyrocketing pension costs and feel that pensions would be safe because of state constitutional provisions guaranteeing them.
(Excerpt) Read more at americanlegislator.org ...
If you have an unfunded/paygo pension, you probably aren’t going to have a pension in a few years.
Stockton still exists?
It was a broke, hellhole when I lived in CA in ‘80-’82!
A lot of folks are going to be taking a shave or haircut on their pensions in coming years. The illegals will still get those 34 million green-cards Obama is printing up & welfare though. The United States is no longer a serious nation IMO. That ship has sailed.
The constitutionality of this ruling is questionable since cities are political subdivisions of state governments. But when have the federal courts ever passed up an opportunity to expand federal power at the expense of the states?
Or at the expense of the people.
The Tenth Amendment should have been the First.
What really annoys me most about this is that it was completely unnecessary. No legislature can bind its successors and the statute guaranteeing those pensions could have simply been repealed. Getting the federal court to do it was an act of political cowardice and the cost will be a marginal but permanent reduction in state sovereignty.
The bankruptcy judge can't make money out of thin air. There is only a certain amount of funds to work with, and if that amount is less than the pension obligations, it's hardly the judge's fault.
“Wilterdink”
Odd last name.
Why is that such a revolutionary concept? Why? Some crooked Dem politician promises government workers the moon and the stars to vote for him but doesn't fund it at the time the promise is made, as is required under ERISA. Its writing a check that you expect future generations to pay. Why is it so revolutionary to think that the promise was way to generous? That no one can afford to pay it? Forcing people to pay for these wildly rich pensions is slavery, pure and simple.
Pensions were long thought to be absolutely sacrosanct and unable to be cut, even in bankruptcy, especially since pension obligations are specifically protected under state law.
This has Always been the BIG LIE and Only those unable to think for themselves believe it, you cannot enslave a future generation to pay for your WANTS TODAY.
Any Pension Plan that has “Unfunded liabilities” is by definition a PONZI scheme. it requires future revenues to fund day to day operations, and wholly ILLEGAL.
All Public Pensions could be eliminated tomorrow by the Legislature.
This will all blow up big time in the very near future.
Why, don’t you know government deadhead employees are OWED when they retire?!
/sarc
The Constitution explicitly gives Congress the power to pass "uniform Laws on the subject of bankruptcies throughout the United States." (Art. I, section 8, clause 4). The City of Stockton voluntarily chose to take advantage of those laws by filing for bankruptcy protection in federal court, and got significant benefits by doing so (including the ability to pay off its creditors at a fraction of what was owed). Once Stockton was in a federal bankruptcy case, the "uniform" federal laws are what governs, not state law.
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
The governance of bankruptcy is an Article I power of the Federal Government.
You mean like Social Security?
the unionists have no problem threatening to strike if they don't get a contract giving them inflated undeserved pensions for doing a pizz poor job and i have no problem if they don't get them, so we're even...
“Judge Klein’s ruling has highlighted the fact that political promises must bend to the reality of numbers.”
Approaching 18 trillion
https://www.youtube.com/watch?v=3hIcKkKID8k
If you all will notice, every one of these politicians that presented the city of Stockton with all this misery, are all gone. Yep, they’ve done their damage and left the town holding the bag. I would be very curious as to see where they’ve gone. I will guarantee you that they are in another part of the country, to do damage to what ever town they wind up in
Or any municipality-funded teacher/fire-fighter/police pension.
Bankruptcy laws are federal. Just because a state constitution protects pensions does not mean that they are guaranteed in the event of municipal bankruptcy. Case in point—Detroit. Federal bankruptcy laws trump any state law. The federal judge is correct in this matter.
The problem is that state and local politicians make contracts with unions that the taxpayers are on the hook for, but those taxpayers are never at the bargaining table to negotiate those contracts. Scott Walker took a bold step in changing the collective bargaining of municipal employees.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.