December 21, 2012

External Affairs Branch
(916) 795-3991
Robert Udall Glazier, Deputy Executive Officer
Contact: Brad Pacheco, Chief, Office of Public Affairs
PressRoom@calpers.ca.gov

Statement on U.S. Bankruptcy Proceedings in San Bernardino

SACRAMENTO, CA – The California Public Employees’ Retirement System (CalPERS) today issued the following statement after a U.S. Bankruptcy Judge denied the Pension Fund’s motion for relief from the automatic stay in the City of San Bernardino bankruptcy case:

“Today’s hearing is one step of many on a journey. While it is not surprising that the decision was to keep the issues in bankruptcy court, the court clearly stated today’s decision was not a 'great victory' for the City of San Bernardino nor a 'great defeat' for CalPERS. The Court recognized that all debts incurred after filing for bankruptcy by any entity must be paid in full at the time of approval of the plan of adjustment. We are confident that the court will recognize the priority of our members and the obligations owed to them. Most importantly, we must not lose sight of those people who could be most impacted – the public employees and retirees who worked hard over their careers to serve the City of San Bernardino.
 
“These public employees and retirees are CalPERS members and our responsibility is to protect the benefits that were promised to them by their employers and to make sure CalPERS has the funds to pay benefits. By state law and Constitution, CalPERS has the legal and fiduciary obligation to deliver and protect the benefits that public employees have earned.
 
“San Bernardino's hard working public employees spent their careers serving our fellow Californians. Those employees live here, work here, retire here and pay taxes here. They made their pension contributions and they earned their pensions.

"We have had good dialogue with the City of San Bernardino officials and expect to continue to help forge solutions. As always, CalPERS will continue to responsibly fulfill our duties and protect those who serve California every day of their careers.”

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Dated: 12-21-2012