Judge suggests Stockton,CA worker pensions could be reduced in city’s bankruptcy case

The Sacramento Bee reports:

Government pensions were once considered untouchable, ironclad, off limits even if the employer went bankrupt.

On Tuesday, a federal bankruptcy judge in Sacramento inched closer to changing all that. Commenting during a hearing on Stockton’s bankruptcy case, U.S. Bankruptcy Judge Christopher Klein suggested that employees and retirees could have their pensions reduced to facilitate the city’s financial reorganization.

“I might be persuaded that … the pensions can be adjusted,” Klein said.

History in the making.