BK judge slams taxpayers on Stockton pensions

BK judge slams taxpayers on Stockton pensions

Lifestyles_of_the_Rich_&_FamousIn boon to public pensioners and a shock to taxpayers throughout California, federal Judge Christopher M. Klein approved a bankruptcy plan to put Stockton city retirees at the top of the heap. That means taxpayers are at the bottom.

Also stiffed will be bondholders. That puts at risk other municipal bonds throughout California. And it will mean higher costs to service future bonds, such as the $7.5 billion in water bonds on the Nov. 4 ballot as Proposition 1. Investors understandably will demand higher interest rates for any bonds emanating from the Pyrite State.

Which means taxpayers again will pick up the tab.

The city sensibly argued that Klein’s action also puts it at risk for another bankruptcy. “But Klein said Thursday that Stockton’s plan for paying creditors over the years was adequate and passed all legal tests,” reported the Los Angeles Times.

But that’s just what has happened to Vallejo after its 2008 bankruptcy also left it forced to pay full pension benefits. As CNN reported in March:

“The California city of Vallejo emerged from bankruptcy just over two years ago, but it is still struggling to pay its bills. The main culprit: Ballooning pension costs, which will hit more than $14 million this year, a nearly 40% increase from two years ago.”

Meanwhile, the California Public Employees Retirement System has been spiking pensions again.

Next up: San Bernardino’s bankruptcy. In September, Judge Meredith Jury ruled the city unilaterally could cut firefighter pensions. We’ll soon see if her ruling sticks.

Meanwhile, as James Poulos reported on our website, the state is spending so much on pensions its roads are crumbling to dust.

Well, I guess it’s ok to make sure state pensioners, more than 16,000 of whom now pull down $100,000 or more a year, can enjoy their retirements in Lucullan luxury on their Idaho ranches.

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  1. Ted Steele, Editor
    Ted Steele, Editor 2 November, 2014, 07:59

    The Doomera LOVED Judge Klien right up until the time he started to follow the law.

    As always— these loyalists do not love the Constitution.

    Reply this comment
    • Skippingdog
      Skippingdog 3 November, 2014, 10:09

      The same way they’ll continue to love the 10th amendment, right up until the moment a federal appeals court reverses a bankruptcy judges decision to impair some pensions in violation of state law.

      Reply this comment
    • S and P 500
      S and P 500 3 November, 2014, 23:29

      I still like him–after all he did rule that pensions can be reduced in a bankruptcy. And the Stockton retirees did lose their health care benefits which almost makes up for their keeping their pensions.

      Reply this comment
  2. SeeSaw
    SeeSaw 2 November, 2014, 10:03

    I think that CalPERS could have done a better public-relations job in explaining the “99 ways”. What it did, was clarify the types of acting pay that could be used in the pension calculations. CalPERS has not been out spiking pensions!
    What we all should be concerned about is the sustainability of the 98% of CalPERS annuitants who make less than $100,000. Fifty-percent of CalPERS annuitants make less than $18,000 yr. Pensioners are ordinary people–who would have thought?

    Reply this comment
    • John McClure
      John McClure 3 November, 2014, 08:48

      Guide to 2014 Judicial Candidates by County:
      http://www.judgevoterguide.com/#orange

      Its tough to find useful information related to Judicial Candidates on the ballot. I hope the link helps.

      Reply this comment
    • S and P 500
      S and P 500 3 November, 2014, 23:31

      In the movie “Captain Phillips” those Somalian pirates are just poor desperate people trying to survive–who would have thought? I can’t believe that one guy who couldn’t even afford shoes to go on the pirate mission.

      Reply this comment
  3. LetitCollapse
    LetitCollapse 2 November, 2014, 10:24

    I keep trying to educate you folks on the ‘ruling class’. And now you’re surprised that Klein stabbed you in your backs??? HAH! This will continue until it can’t anymore. I keep telling you that. Once the interest rates start to INVOLUNTARILY rise, regardless of how much backdoor fiat currency they siphon to the banks, that will be the kiss of death. In the end, MATH will solve everything. Klein and the rest of these jokers are players. They do as they’re told by the oligarchs. I don’t know why some people can’t figure that out yet. Look, we have about $19T in federal debt. As soon as the interest rates rise to 6% – IT’S OVER. THE FAT LADY WILL HAVE SUNG! And it’s not that far off into the future. So enjoy your pensions while you got ’em, you gov trough feeders!!! Because when the bubble finally bursts you’ll be the first on the chopping block…..trust me!!! HAH! 😀

    Reply this comment
    • Ted Steele, Editor
      Ted Steele, Editor 2 November, 2014, 17:11

      LOL NOW El Collapso hates Judge K !!! LMAO—- typical teabagger—- only support article 3 of the USC when they win!

      Childlike!

      Hurry Backpeddle now !

      Reply this comment
    • Ted Steele, Editor
      Ted Steele, Editor 2 November, 2014, 17:13

      LOL

      Hey another Collapso prediction ™ was located in that last post— she said….pensions going away …”not that far off into the future” !

      Oh my Cooooooooooooooooooooooooooooooolapsoooooooooooooooooooooo!!!

      Reply this comment
  4. SeeSaw
    SeeSaw 2 November, 2014, 12:03

    You cannot be trusted as far as I could throw you! You can go on shouting, “Hah”, until the cows come home, for all I care. I’m going to continue living my life, collecting my pension, until the day I die–“Ha-Ha”.

    Reply this comment
    • LetitCollapse
      LetitCollapse 2 November, 2014, 19:31

      Your pension benefits are going to get siphoned off to ensure the food stamps, section 8 and WIC programs stay intact, seesaw. If you expect to still be around 5 years from now your pension will get slashed by a minimum 25%. This bubble economy of ours is headed for another crash – because we never really recovered from the last one. The only thing keeping it afloat was the $trillions$ in QE. And they KNOW that once the interest rates rise with $19T in Federal debt we’re really screwed. The EU and Japan are in BIG trouble too. If either go down – we go down with ’em. I have NEVER seen such a precarious economic scenario in all my life. All sleight of hand. No substance. The poor people will get theirs before you get yours, seesaw. Cut off food stamps and section 8 to the poor and the cities burn to the ground. You’re the one with the deep pockets, dear. And old people like you don’t riot! HAH! Pension cuts are coming. And BIG ones too! You can live with half your pension check, seesaw. You need to step up and sacrifice for the millions of indigent illegals that Obola is about to give amnesty. HAH! They need to eat and have a place to live. Your transferred pension money will help make that happen!!! 😀

      Reply this comment
      • SeeSaw
        SeeSaw 2 November, 2014, 21:10

        We have been talking for seven years–you were telling me this seven years ago! If I am lucky enough to still be here five years from now, my pension will still be fine and you will still be saying that it is going to be chopped up. Well, sorry–you have no avenue with which to take one penny of my pension and CalPERS is not involved in payments to illegals. So just keep crying in your beer!

        Reply this comment
        • LetitCollapse
          LetitCollapse 3 November, 2014, 07:29

          “We have been talking for seven years–you were telling me this seven years ago!”

          7 years ago? I have no idea what the hell you’re talking about. Do you think we’re blood cousins or sumpthin’?

          “We have been talking for seven years–you were telling me this seven years ago!”

          When the money runs out and the poor folks start shouting “No justice NO peace” the ruling class will reach into your pension benefits and steal a ‘loan’ to feed and house the poor. You think you’re exempt from the long arm of the ruling class??? HAH! When the money runs out they simply change the laws. It’s easier to change the laws than it is to feed and house people for free! HAH! Today’s economy is running on a wing and a prayer. Debt kills nations. World history taught us that over and over again. We are the biggest debtor nation on earth, by far. This train ride won’t last much longer until we reach the cliff. Within 5 years your pension not only gets “chopped”. It gets diced!!!! HAH! 😀

          Reply this comment
          • Skippingdog
            Skippingdog 3 November, 2014, 09:59

            No doubt about it, Ocobserver has snuck back in with a new name.

          • SeeSaw
            SeeSaw 3 November, 2014, 10:14

            You can always spot the rhetoric, no matter the screen name. LIC, was AKA “Ocobservor” and also AKA “Beelzebub”. Yes LIC, we have been talking with each other for seven years. (I have also been talking for seven years with “Rex the Wonder Dog”, AKA “Surf Puppy”, and AKA “Wild Gurl”, and several other disguises he uses. He was once “Georgia” from Beaumont too.)

          • S Moderation Douglas
            S Moderation Douglas 3 November, 2014, 12:12

            Sometimes I use “SDouglas47”

            They can’t figure it out!!

            “Trust me!!”

          • Ted Steele, Editor
            Ted Steele, Editor 3 November, 2014, 18:16

            Seesaw you are correct about the AKA’s

            VERY easy to see……ranting trolls are ranting trolls………You on the other hand are a clever, informed and thoughtful poster!

          • Ted Steele, Editor
            Ted Steele, Editor 3 November, 2014, 18:17

            I ALWAYS use variants that contain “Ted” in some form— I do this for tax reasons and security measures that I am unable to elaborate on at this time!

          • S Moderation Douglas
            S Moderation Douglas 3 November, 2014, 22:00

            I could tell you, but…………..

          • LetitCollapse
            LetitCollapse 3 November, 2014, 22:41

            saw, I bet you see little green conservative terrists behind every fence post conspiring to usurp your pension benefits too, doncha dear? Are you a grad of the Sherlock Holmes Institute of Technology (AKA ****) by chance? 🙂

      • S and P 500
        S and P 500 3 November, 2014, 23:43

        Those Stockton and Detroit retirees lost their health benefits–they will soon find out how expensive Obamacare is. The scammers have become the scammed–they will be paying $100 for a doctor visit and the drug companies can charge them just about anything for their meds. I hope they didn’t see the “60 Minutes” about the cost of cancer drugs. If they are stupid enough to send their kids to college the tuition bill is $24K for one semester at USC–USC has a very big pension bill, too. I agree there is something wrong with the economy when Uber is worth more than any airline and most of the work in Silicon Valley is devoted to producing more useless phone apps. Check out this website: whatifillinois.org. 13,000 teachers will be fired in Ill. if the courts stop pension reform. That’s awesome. Like Paul Ryan says, if we don’t make some common sense change to our spending, the country will soon be like the NBC show “Revolution”.

        Reply this comment
  5. Ulysses Uhaul
    Ulysses Uhaul 2 November, 2014, 15:19

    Saw….and no more jug wine…step up….try Pavillions for six packs of Kendall Jackson or Sterling on discount. You deserve it girl…..hard work pays off for good people in government work.

    And shun the Donkey and Clipped-o….they are crusty, mean spirited codgers with no future but moaning watching Golden Girls on their rabbit ears TV’s.

    Reply this comment
    • SeeSaw
      SeeSaw 2 November, 2014, 21:13

      It might be fun if I drank wine–I don’t drink alcoholic beverages at all due to medication that tells me not to do so. I can find plenty of other ways to have fun.

      Reply this comment
  6. Wolfman
    Wolfman 2 November, 2014, 16:08

    and the people keep voting for tax and spend Jerry Brown

    Reply this comment
  7. Desmond
    Desmond 2 November, 2014, 16:20

    I think the govt will take care of govt people first when a financial crisis hits.That is history. Change only comes through violence. Pick the scenario. Revolt, dont think so, USA is docile..give them football and beer, dumb TV. No, I think somewhere we are going to get our ass kicked and the cause and effect will traumatize the economy, and much of the world’s.Then it will be more totalitarian in the good old USA. Who knows where? Seems like Russia is prepping for a confrontation with NATO. Without total US commitment, NATO could get smoked, and Europe’s history will enter a new phase. Could see Russia threatening nuclear response, and they get the expansion of Russian dominance beyond their borders. A pension check will seem trite, but give them their pension checks, football, and tell them to keep quiet. The most hated generation would have it no other way. They will be quiet till they are worm feces.

    Reply this comment
    • LetitCollapse
      LetitCollapse 2 November, 2014, 19:55

      “Change only comes through violence.”

      You mean to tell me that voting and writing our congressmen doesn’t work anymore? hah! But what about ‘consent of the governed’ and ‘of, for and by the people’? Isn’t that how the black folk won their civil rights? 🙂

      “Revolt, dont think so, USA is docile..give them football and beer, dumb TV.”

      Docile only up until the money runs out. You have not idea what your average American is capable of when his stomach is growling and he’s living on the street. You think we’re any different than the greeks or the egyptians? Hungry is hungry, man. No matter what you nationality might be.

      “No, I think somewhere we are going to get our ass kicked and the cause and effect will traumatize the economy, and much of the world’s.”

      The entire globe is tired of the big bully America. As soon as the rest of them decide to offload the dollar as the global reserve currency we’re done. And we aren’t the only nation with nuclear warheads. If another Bay of Pigs scenario unfolded the US leaders would cave. We’ve turned sissy. When push comes to shove we tuck tail. We only specialize in knocking over nations without standing armies. Putin could make Obola tap dance. Why do you think Obola backed down on forcing regime change on Assad? Because Putin stared him down. That’s why.

      Desmond, the most effective way to bring down the greed mongers is to go galt. Stop producing. Go on the dole. Don’t feed them. Make them feed you! 😀

      Reply this comment
    • bob
      bob 2 November, 2014, 20:01

      I think the govt will take care of govt people first when a financial crisis hits.That is history.

      No doubt. Even without a financial crisis. Before our government masters demand sacrificies from their minions they will bleed those outside gummit white.

      Reply this comment
  8. Bob
    Bob 2 November, 2014, 16:48

    Nothing to see here, John. Just move along, now. Everything is gonna be just fine. Sawhorse, Teddy, Doglass and the rest will all attest to that. And there’s nothing that a tax increase won’t solve for Stockton. Just one more otta do it…and one more..and one more…

    Reply this comment
    • Ted Steele, Editor
      Ted Steele, Editor 2 November, 2014, 17:07

      Bo Bo

      Oddly, you would probably like that—-It won’t quite go that way though and as the econ improves and over time the reforms kick in more all will be well and freeloaders who want gov services but don’t want to pay will fade away——-in the mean time— run for office and get in the collective bargaining process—- put your whining to work! You’ll feel better.

      Reply this comment
  9. fletch92131
    fletch92131 2 November, 2014, 17:44

    what California needs is some real outsourcing/privatization of most functions. Here’s my blog to deal with it: http://bit.ly/10rkHTM

    Reply this comment
    • bob
      bob 2 November, 2014, 17:48

      Could ya outsource Teddy right outta this blog?

      Reply this comment
    • S Moderation Douglas
      S Moderation Douglas 3 November, 2014, 12:50

      “what California needs is some real outsourcing/privatization of most functions. Here’s my blog to deal with it:

      “The problems with California start from the inclusion of unnecessary personnel in the state personnel inventory.”
      ……………………………..

      Center for Continuing Study of the California Economy

      “In 2011 California had the 5th lowest number of full-time equivalent state government employees relative to population among all states.”

      “The U.S. average was 140 state employees per 10,000 residents.”

      “California’s ratio of state government employees relative to population was 23% below the national average. California had 108 state employees for every 10,000 residents”

      “However, if you take total state employee pay as a percentage of state personal income, California ranks near the middle. State employee pay represents 1.8% of personal income in California, slightly below the national average of 1.9%. That would rank California below 34 other states.”

      Reply this comment
  10. Ulysses Uhaul
    Ulysses Uhaul 2 November, 2014, 18:31

    teddy is fair and balanced….doomers are Gucci redistributers…..pay poor wages, charge top dollar, chum moderate Republicans for big government goodies…….

    No defend yourselves-

    Reply this comment
  11. TruthandtheAmericanWay
    TruthandtheAmericanWay 2 November, 2014, 22:07

    Screw the unions, as I did not vote for these abusive absurd pension plans on my dime. Not one of them needs to get full salary upon retirement, early I might say and they go right back to work in the government again reaping thousands of dollars in fee money. This is ludicrous at best and pure financial disaster as one can see. So in closing, “F” the taxpayer the idiot judge says and sides with the outlandish not voter approved draconian union blood sucking contracts.

    Reply this comment
  12. LetitCollapse
    LetitCollapse 3 November, 2014, 07:16

    Look folks, the only way you fight this tyranny and fascism is to go Galt. Don’t be a producer. Be a taker. Make them feed you for free. Be a parasite. You can’t win the battle at the polls anymore in a one-party system. And you can’t win the battle in the courtroom when the judges rule time after time in favor of the ruling class. Your only other options are violence or going Galt. I never promote violence. Violence is for losers. So, as I see it, the only other option is going Galt. Stop voting. Stop writing your congressman. Pay as little in taxes as legally possible. Go Galt.

    Reply this comment
    • Skippingdog
      Skippingdog 3 November, 2014, 10:06

      When did the library start putting the kooky Ayn Rand books in the children’s section?

      Reply this comment
    • Ted Steele, Editor
      Ted Steele, Editor 3 November, 2014, 18:12

      LOL– Now Collapso back peddles to “pay as little taxes as legally possible”….lmao— he used to advocate not paying taxes!

      Oh my
      wait til his Mom and Dad get home!

      Reply this comment
      • LetitCollapse
        LetitCollapse 3 November, 2014, 20:57

        “LOL– Now Collapso back peddles to “pay as little taxes as legally possible”….lmao— he used to advocate not paying taxes!”

        I never advocated illegally evading taxes. You’re deceitful. And I know what you called me before, chump. I saved it. 🙂

        Reply this comment
  13. SeeSaw
    SeeSaw 3 November, 2014, 10:19

    Go find an island in the Pacific, LIC. You have lost it, completely!

    Reply this comment
    • LetitCollapse
      LetitCollapse 3 November, 2014, 11:22

      You were able to scam the system by ‘working’ for the gov for 40 years, seesaw. The rest of us have options too! Even the illegals who invaded our nation are going on the dole! And the more people who go on the dole the faster your pension gets sliced and diced to support the rest of us!!! HAH! There is more than one way to skin a cat!!! HAH! 😀

      Reply this comment
      • SeeSaw
        SeeSaw 3 November, 2014, 12:35

        LIC I started as part-timer with the salary of $1.85/hr. There was no SS and no CalPERS at my municipality then–both were the farthest things from my mind–I was looking to supplement living expenses for my family. It took 40 years and 8 mos. for me to get a pension big enough to sustain me and my spouse for the remainder of our lives. Quite a scammer, aren’t I! (Illegals never got their feet in the door when it came to working in the public sector–and illegals have no bearing on whatever happens with our public-sector pensions. You are just grabbing at straws–trust me–everybody knows it!)

        Reply this comment
        • LetitCollapse
          LetitCollapse 3 November, 2014, 15:31

          Seesaw, the VERY most someone can collect in social security after 40 years of work is about $30,000. Not a dime more for someone is makes $500,000 a year. $30,000 is the max! How much is your annual public pension benefit? I suspect a good deal more than $30,000, isn’t it? Why should you get a larger pension benefit that somebody who worked in the private sector for 40 years and made $500,000 a year??? Hmmmm??? Answer that one, dear! 😉

          Reply this comment
          • SeeSaw
            SeeSaw 3 November, 2014, 20:10

            You cannot compare apples and oranges. I was not covered by SS, and I lost the spousal SS benefit that spouses of private-sector workers get, because my pension offsets it. There are pros and cons, gives and takes, with everything in life. Social Security recipients do not expect it to be their only retirement income, just as the CalPERS pension is not my only income, because my employer wisely set me up in a 457 plan, which I funded myself. I also funded, out of my own pocket, four and one-half years’ CalPERS service credit for the part-time work that I had not been covered. My pension was calculated on a gross income of less than $50,000 per year, 36.4 years official service credit–and you want to compare my pension with one earned by somebody in the private sector who made $500,000 a year? Ha-Ha will trade with him. Evidently you never heard about golden parachutes that a worker in that classification would get in the private sector. Grab some more staws, LIC–you aren’t getting anywhere with the ones you have pulled so far.

          • LetitCollapse
            LetitCollapse 3 November, 2014, 20:53

            “This is a democracy, so as they say in Chicago, vote early and vote often.”

            Right. Public sector working conditions and benefits got all the ‘pro’s’. Private sector working conditions and benefits got all the ‘con’s’. Everything is backasswards. The real producers who take all the risks get screwed. The lazy and incompetent parasites with lifetime employment get treated like kings and queens. No wonder the empire is crumbling before our eyes.
            Nowhere is the private sector do people get 80% of their last paycheck @ age 55 for the rest of their natural lives, seesaw. And that is typical in government. You know that. So stop acting naive. It’s the folks in the private sector who take all the risks and they get thrown crumbs compared to the lifetime employment parasites in government. You people are destroying the financial futures of the younger generations. And it’s shameful.

          • S Moderation Douglas
            S Moderation Douglas 3 November, 2014, 21:38

            The empire isn’t crumbling. It’s you eyes that are screwed up.

            The problem isn’t with me or SeeSaw. Look in a mirror.

            THERE’S the problem.

            You have met the enemy, and he is you.

          • LetitCollapse
            LetitCollapse 3 November, 2014, 22:59

            SM&D – the public trough feeders are destroying the financial lives of the young generations. Somebody will have to pay for all the avarice and greed proliferated by all the little piggies crawling in the dirt in their starch white shirts (to quote the late great George Harrison). Even wild animal treat their young with more respect. And it is repulsive beyond words. The ME ME ME generation. Screw everybody else. Shameful! 🙁
            Your problem is that you can’t see beyond your own nose! 🙂

          • S Moderation Douglas
            S Moderation Douglas 4 November, 2014, 16:31

            But, I do have a very long nose.

          • ted Steele, Associate Prof.
            ted Steele, Associate Prof. 4 November, 2014, 18:37

            Poor Constipado—- growing old in her trailer…”hey you kids….get off of the lawn”!

  14. S Moderation Douglas
    S Moderation Douglas 3 November, 2014, 12:31

    HAH! There is more than one way to skin a cat!!! HAH!

    Reply this comment
  15. SeeSaw
    SeeSaw 3 November, 2014, 21:42

    LIC, if I had retired at the age of 55, I would have received 26% of my highest salary. Who is being naive? I have listed it all for you. My spouse was in the private sector–I know his story. You remind me of my local Firefighter who told me that there was no reason for me to get a pension amount of 100%–I countered with the fact that, if I were to get 100%, it would still be a few thousand dollars less than his 90%. Its the amount that is relevant when it comes to the cost of living–not the percentage. Furthermore, anyone who is making $500,000 in salary, has a cap on the amount of income that is taxed for SS–You picked a crazy hypothetical scenario. Why don’t you call that guy and tell him you know a public pensioner who will give him their lifetime, public sector pension in exchange for his severance pay and golden parachute. Ha-ha, you don’t even qualify to do,”stand-up”, LIC–you are stuck grabbing at straws.

    Reply this comment
  16. Queeg
    Queeg 3 November, 2014, 21:53

    Saw…shun this LIc…..and enjoy your pension for hard work and public service for years….you deserve a good retirement. No wine ok…apple cider will do.

    Reply this comment
  17. LetitCollapse
    LetitCollapse 3 November, 2014, 23:15

    http://www.youtube.com/watch?v=sXdKlpBOvs0

    “Everywhere there’s lots of piggies
    Living piggy lives.
    You can see them out for dinner
    With their piggy wives.
    Clutching forks and knives to
    Eat their bacon.”

    George Harrison (02-25-43 to 11-29-2001) RIP.

    Reply this comment

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