A test for state’s untouchable pensions Stockton, on verge of bankruptcy, running up against the 800-pound gorilla known as CalPERS

Some public pension experts think they know why pensions were not on the city manager’s list. They see the hidden hand of California’s giant state pension system, known as Cal-PERS, which administers hundreds of billions of dollars in retirement obligations for municipalities across the state.

CalPERS does not want cities like Stockton going back on their promises, and it argues that the state Constitution bars any reduction in pensions — and not just for people who have already retired. State law also forbids cuts in the pensions that today’s public workers expect to earn in the future, CalPERS says, even in cases of severe fiscal distress. Workers at companies have no comparable protection.  (Click here to read the article)