The judge presiding over Stockton, Calif.’s bankruptcy case yesterday said that he will question officials from CalPERS to determine whether the nation's largest pension fund can be forced to take losses in the case along with other creditors, Reuters reported today. Describing the thorny question of whether the California Public Employees' Retirement System should remain whole while other creditors absorb steep losses as a "festering sore," Bankruptcy Court Judge Christopher Klein said he needed to consider alternatives for the matter. CalPERS contends its protected status is guaranteed under law, and Stockton, which declared bankruptcy nearly two years ago, has not tried to impose any losses on the $285.2 billion pension fund.
