CalPERS likely to lose next court battle, San Bernardino bankruptcy observers predict (SB Sun)

December 4, 2012 – The judge handling San Bernardino’s bankruptcy likely will not lift a stay so CalPERS can sue over missed pension payments, several attorneys studying the legal battle predicted Tuesday. That could save expensive legal fees for the city, which plans to resume payments in fiscal year 2013-14 and repay the rest later because it says paying earlier would ruin the city. The two cities’ bankruptcy cases are being watched because they cover untested legal ground and touch on potential changes to the California Public Employee Retirement System – the nation’s largest retirement system – but there are also practical concerns, said bankruptcy attorney Karol Denniston.

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