CALPERS wins. Local Government Cannot Stop Paying Into System.

Bond creditors sued to stop San Bernadino from making pension payments. Why? So the creditors could get paid. 

San Bernadino filed for bankruptcy in 2012. In the process, it agreed to pay its $24 million in pension payments to CALPERS. The creditors that sued are owed $59 million. 

If San Bernadino would have paid less than full to CALPERS a complicated legal system would have been triggered and pension benefits would be reduced to curent retirees. 

Sacramento Bee