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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCourt lets Stockton, California cut retiree health care
Source: Reuters
By Jim Christie and Peter Henderson
SAN FRANCISCO | Fri Jul 27, 2012 8:41pm EDT
(Reuters) - A federal bankruptcy judge on Friday cleared the way for Stockton, California to cut health care benefits for retirees while it is in bankruptcy proceedings.
Stockton is seeking Chapter 9 protection from its creditors and said that it would cut retiree health benefits while it reorganizes. Retired employees sued to stop those cuts.
Judge Christopher Klein on Friday issued a temporary order denying the bid to stop the benefit cuts, and he said a formal decision was on its way.
Stockton's attorneys had argued that bankruptcy law gave the city wide latitude on how to spend its revenue while it prepares a plan to restructure its finances.
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Read more: http://www.reuters.com/article/2012/07/28/us-usa-bankruptcy-stockton-idUSBRE86R00X20120728
Systematic Chaos
(8,601 posts)Killing the elderly to save a town. Brilliant idea.
(I don't really need any special smileys for this post, do I?)
Ikonoklast
(23,973 posts)First, by promising them future benefits in lieu of pay when employed by the city, then taking those benefits away when they need them most.
Legalized theft.
dixiegrrrrl
(60,010 posts)TouchOfGray
(82 posts)n/t
kelly1mm
(4,735 posts)exactly San Francisco or Silicon Valley.
Ikonoklast
(23,973 posts)If the taxpayers of Stockton refuse to fund their local government, then they deserve what they pay for in return.
Expecting others to suffer so I can still benefit is fucked up.
kelly1mm
(4,735 posts)decide how much the town can pay to its creditors, just like any bankrupcy proceeding. If the town can pay, in the judge's opinion, all, some, or none of the promised benefits then it will. Bankrupcy is often 'fucked up' for creditors. That is how it works.