San Bernardino to Curb Payments on Retirees in Bankuptcy
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San Bernardino, the second-largest U.S. city to seek bankruptcy protection, will put off paying $13 million to California’s retirement system and $3.4 million for pension bonds issued in 2005, in a provisional spending plan.
The City Council voted 5-2 for the fiscal road map yesterday to meet a court-imposed Nov. 30 deadline for a balanced interim municipal budget while in bankruptcy proceedings. In addition to deferring payments on pension obligations, the plan calls for firefighting and policing cuts.