Court lets Stockton, California cut retiree health care

[Eugene]

Source: Reuters

Court lets Stockton, California cut retiree health care

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]

1. Yeah, that'll show 'em.

Killing the elderly to save a town. Brilliant idea.









(I don't really need any special smileys for this post, do I?)

[Ikonoklast]

2. So, Stockton gets to steal from its employees twice.

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]

5. Stockton pulled "a romney"..

[TouchOfGray]

3. So rather than taxing the wealthy homeowners they will let the elderly die?

n/t

[kelly1mm]

4. What wealthy homeowners? Have you ever been to Stockton? It is not

exactly San Francisco or Silicon Valley.

[Ikonoklast]

6. What solutions would you propose?

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]

7. I think the bankrupcy proceedings should continue. The Court can

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.