Pacific Grove, CA is contemplating filing Chapter 9 bankruptcy to get out from under the weight of its pension obligations - specifically CALPERS obligations!
Mismanagement of the retirement funds held at CALPERS has caused a great deal of expense to California Municipalities, because they are forced to accelerate contributions to make up for investment portfolio losses.
Apparently the 2000-2002 Bear Market saddled Pacific Grove with an additional $19 million in CALPERS pension obligations. So just imagine how much this Bear Market is going to cost them. Didn't CALPERS lose something like $38 billion last year?
Expect to see other towns and cities in California contemplate Chapter 9.
Fear Municipal Bonds!
http://www.montereyherald.com/ci_12177369?source=rss_viewed
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