Perhaps recognizing that it needs to take action before other cities use bankruptcy as a way of shirking their pension obligations, California's state-wide public retirement body has threatened to sue the city of San Bernardino for its missed pension payments.
According to Bloomberg, the California Public Employees Retirement System is attempting to sue the city, located to the east of greater Los Angeles, as it has so far missed $5 million in payments to the state pension fund.
San Bernardino filed for bankruptcy proceedings in August, claiming that a $46 million budget shortfall was partially brought on by the mounting costs associated with its employee pension obligations.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
