With more cities facing financial troubles, the ruling could have broad implications. It raises questions about whether cities that have filed for bankruptcy would be free to slash their pension contributions — and even use the money to repay other debts.
Until now, CalPERS had argued successfully in the bankruptcy cases of other California cities that amounts it requires for public worker pensions could not legally be reduced. The pension fund had argued that public worker pensions are protected by state law and outside the jurisdiction of bankruptcy courts.
Stockton lawyers argued in court against cutting the pension payments. The average tenure of its police officers had dropped to nine years from 14 years, they noted.
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