Federal Judge Rules CalPERS Pensions Can be Cut in Bankruptcy

On Wednesday, a federal bankruptcy judge ruled that CalPERS pensions can be cut in bankruptcy like other debt.  U.S. Bankruptcy Judge Christopher Klein rejected the argument that CalPERS is an “arm of the state” with pensions protected by federal law and two state laws on contracts and liens.  For the latest on this ruling, and its potential impacts, click here.