Tip:
Highlight text to annotate it
X
TEDS SITUATION.
WE'LL CHECK BACK WITH YOU.
HOW SAFE IS YOUR RETIREMENT?
IT'S A QUESTION BEING ASKED
TONIGHT AFTER A DECISION BY A
FEDERAL JUDGE PRESIDING OVER THE
CITY OF STOCKTON'S BANKRUPTCY
FILING.
THAT JUDGE RULED A BANKRUPT CITY
CAN STOP PAYING INTO A PENSION
PLAN FOR ITS WORKERS, JUST LIKE
IT CAN STOP PAYING ITS OTHER
DEBTS.
BUT, WHERE DOES THAT LEAVE
PEOPLE WHO'VE WORKED FOR PUBLIC
AGENCIES FOR YEARS WHO ARE
DEPENDING ON THAT PENSION CHECK?
PEOPLE ACROSS THE NATION ARE
WATCHING THIS CASE.
KCRA 3'S SHAROKINA SHAMS TOOK A
CLOSER LOOK AT THIS TODAY.
SHARO?
THE JUDGE RULED THAT FEDERAL
BANKRUPTCY LAW TRUMPS STATE LAW.
THEY WOULD HAVE THE RIGHT TO
MODIFY CONTRACTS.
NOW, IT IS NOT
JUST STOCKTON
CITY EMPLOYEES, BUT A LONG LIST
OF WORKERS AND RETIREES FROM
LOCAL AGENCIES EVERYWHERE WHO
ARE NERVOUS.
THIS PERSON RETIRED FROM
SACRAMENTO COUNTY.
HE WAS IN CHARGE OF MAINTAINING
COUNTY BUILDINGS.
NOW, HE IS CLOSELY
WATCHING WHAT
A FEDERAL JUDGE DECIDES ABOUT
PENSION FOR CITY EMPLOYEES IN
STOCKTON.
AFTER
YOU RETIRE, YOU CAN
HAVE YOUR PENSION REDUCED?
IT IS LIKE SAYING, OH, BY THE
WAY, WE WILL CUT YOURSELF IN
HALF, BUT WE STILL WANT YOU TO
WORK YOUR.
WHAT WOULD HAPPEN IF THE CITY
AND COUNTIES THEY WORKED FOR
ALSO FILED FOR BANKRUPTCY?
I DON'T HAVE THE ABILITY TO
GO BACK OUT AND START EARNING A
LIVING AGAIN IN ORDER TO MAKE UP
THIS FUNDING.
A JUDGE RULED THAT STOCKTON
CAN REDUCE PENSION BENEFITS AND
THE CITY CAN STOP PAYING INTO
THE PUBLIC RETIREMENT SYSTEM.
THEY ARE LIVING HAPPILY ON
THEIR RETIREMENT.
IT MAY JUST BECOME.
IT MAY BE CUT SUBSTANTIALLY.
WHAT IF IT WAS CUT 60%?
IT IS TIME TO GO BACK TO WORK
AGAIN AT 72.
A JUDGE'S DECISION COULD
RETREAT -- TREAT RETIREES LIKE
CREDITORS.
THEY COULD BE TREATED LIKE A
BANKER JUST LIKE A BANK OF CITY
MAY NOT HAVE TO PAY ITS DEBT TO
A BANK, IT WOULD NOT HAVE TO PAY
ITS PENSION AND OBLIGATIONS TO
RETIREES.
THIS COULD CHANGE THE
LANDSCAPE FOR ALL SORTS OF
MUNICIPAL RETIREMENT SYSTEMS.
THE VICE PRESIDENT OF THE
RETIRED PUBLIC EMPLOYEES
ASSOCIATION IN CALIFORNIA HAS
CITED WIDESPREAD NERVOUSNESS
AMONG RETIREES.
HE SAID THEY SHOULD NOT WORRY,
AT LEAST, NOT YET.
THEY SHOULD BE REASSURED THAT
THERE WILL BE MANY YEARS OF
COURT ACTIONS.
IF THE JUDGE IN STOCKTON WERE TO
ROLL -- RULE AGAINST THE
RETIREES.
STOCKTON HAS SAID IT WANTS TO
CONTINUE TO PAY INTO THE
RETIREMENT PLAN.
THE JUDGE MAKES THE FINAL RULING
ON OCTOBER 30.
SOUNDS LIKE A LOT OF PEOPLE
HIGHLY MOTIVATED TO APPEAL THIS
RULING.
HOW WOULD THAT WORK?
AN APPEAL IS CONSIDERED