The bankrupt California city of San Bernardino revealed on Thursday details of its deal with the California Public Employees' Retirement System (CalPERS), in which the retirement fund will be paid in full under the city's bankruptcy exit plan, Reuters reported yesterday. San Bernardino announced last year it intended to pay CalPERS in full under its bankruptcy plan, while cutting its bondholder debt. But it had not before revealed details of the deal with CalPERS, America's largest public pension fund with assets of $300 billion. San Bernardino, a city of 205,000 located 65 miles east of Los Angeles, declared bankruptcy in August 2012 with a $45 million deficit. San Bernardino was recently ordered by the federal bankruptcy judge overseeing the case to make public the CalPERS deal, and the city published the details before a court hearing in the case yesterday. The CalPERS deal has angered other creditors, including holders of $50 million in pension obligation bonds, who face cuts to their debt. They are suing the city over the CalPERS deal.
