Stockton Pension Ruling: A Game Changer

Michael A. Sweet was quoted in The Bond Buyer article, "Stockton Pension Ruling: A Game Changer." Full text can be found in the October 2, 2014, issue, but a synopsis is below.

A ruling in the Stockton bankruptcy case that pension obligations can be impaired could increase the efforts of other cities to address pension costs, but is unlikely to lead to a rush to bankruptcy court, attorneys say.

"Filing for Chapter 9 is such an extraordinary step. I think cities are hard-pressed to do it, if they haven't found themselves there already, because the economy is getting better and things are looking up," Sweet said. "A lot of cities are working out solutions with their pension funds on their own, consulting with CalPERs or whoever else in order to avoid Chapter 9."