A judge okayed San Bernardino’s bankruptcy last week. That city, unlike Stockton, has stopped its payments to the state pension giant CalPERS. And city officials — unlike Stockton — want to give pensions a haircut: up to a 90 percent scalping, according to this story.
CalPERs intimidated Vallejo out of going there. It half intimidated Stockton out of going there. But Stockton officials also consider cutting pensions to city employees to be unfair, after all the other cuts workers have suffered.
So up till now, CalPERS has gotten away with its preposterous contention that public pensioners enjoy immunity from municipal bankruptcy. That will change now, and it should. The unaffordable cost of the CalPERS pension system are what drove San Bernardino into bankruptcy in the first place.