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December 3, 2013 9:13 AM

Bankrupt Detroit can cut pensions; implications big for California

In a case with major implications for California, a judge in Michigan ruled that the bankrupt city of Detroit can impose cuts to its municipal pension plans. The ruling comes as a bankrupt California city, San Bernardino, edges closer to a possible legal showdown with CalPERS over the sanctity of public employee pensions.

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