San Bernardino's council yesterday approved a bankruptcy exit plan that seeks to virtually eliminate the southern California city's pension bond debt while paying Calpers, the state pension system, in full, Reuters reported today. The city council voted 6-1 for the plan after a debate which included input from residents. The bankruptcy blueprint, called a plan of adjustment, must now be presented to the federal judge overseeing the city's bankruptcy by May 30, under a court-imposed deadline. Under the plan, city officials want to slash their $50 million pension debt to just a penny on the dollar. The city previously agreed to pay CalPERS, its biggest creditor, in full now and at all times in the future, an agreement incorporated into the plan.
