Friday, October 19, 2012

Bankrupt San Bernardino Stops Payments to CalPERS

The Sacramento Bee reported today that the City of San Bernardino stopped making payments to CalPERS.  The City filed for bankruptcy protection on August 1, 2012. However, according the CalPERS "under the law of the State of California, a participating public employer in bankruptcy may not terminate its relationship with CalPERS through “rejection” of its “contract” with CalPERS in the bankruptcy proceeding."   The City's move comes on the heels of an announcement by the federal Securities and Exchange Commission that it was opening an investigation into the City's finances.