Stockton Retirees Worry Pension Cuts Follow Health Losses

Retired public employees in bankrupt Stockton, California, who saw health-care coverage shrink last year may see their pensions decrease next as the city wrangles with creditors.

The biggest U.S. city in bankruptcy, Stockton is preparing a plan for paying debt that may propose compensating some creditors less than the principal owed, setting up a likely court challenge from the creditors that the city’s pension contributions be subject to cuts as well.