The Wall Street Journal reports that San Bernardino, which filed for bankruptcy two months ago, has missed a $5.3 million payment to Calpers, the state pension fund, and is projected to miss further payments in the future. This is the first time a California city has refused to make its payments. Amid the subsequent confusion, both sides are digging in their heels:
“I don’t look at Calpers as being any different than any other creditor,” said Jim Morris, chief of staff to San Bernardino Mayor Patrick Morris.
Calpers argues that it cannot forgive or reduce a city’s pension contributions. The city of 213,000 people is effectively violating state law by stopping its pension payments, a Calpers spokesman said in an email.