CalPERS tops San Bernardino creditor list
August 13, 2012
The city of San Bernardino owes $143.3 million to the California Public Employees Retirement System placing CalPERS at the top of the city’s creditor list. [Press-Enterprise]
CalPERS, which runs a $234 billion pension system for more than 1.6 million state employees, school employees and local government workers, tops the list of the city’s disclosed 20 largest unsecured creditors.
The city’s initial Aug. 1 filing estimates it has between 10,000 and 25,000 creditors it owes more than $1 billion.
San Bernardino filed for bankruptcy because its costs were outpacing revenues. The bankruptcy process provides for the city to put off some of its debts while negotiating with its creditors. The court will will make the final decision on how much the city pays each creditor.
Mayor Pat Morris told the Press-Enterprise he was not surprised by the city’s list of biggest creditors as he had cited rising pension costs as one of the contributors to the city’s insolvency.