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Pension Battle Pushes Precedent in Distressed California Town

  • Calpers votes to cut retirement benefits of Loyalton retirees
  • Town exited state pension system because of rising costs
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Letters sent by certified mail usually aren’t how state and local governments signal they’re about to breach the promise that public workers consider ironclad when it comes to retirement benefits.

But that’s how Patsy Jardin, 71, of Loyalton, California, found out that she may lose much of her $48,000 annual pension because the town government failed to fund its long-term liabilities. Reading the letter delivered to her rural home made the former clerk "sick," she said in an interview. "It’s my livelihood."