Defined Benefits

The California Public Employees Retirement System said a ruling by a judge in Detroit that federal bankruptcy law takes precedence over state law may threaten the soundness of public pension systems as a whole.

State Sen. Wilton Simpsons bill would have required all elected officials, except for judges, to move into a defined contribution 401(k) plan after July 1, 2015.

Some 160 health and pension plan customer service representatives and support staff have voted to authorize a strike against the Associated Third Party Administrators unless the company offers a viable union pension plan.

New Jerseys credit rating was lowered one step by Fitch Ratings, which cited an $807 million revenue shortfall and Governor Chris Christies likely use of one-time measures to plug the gap.

Rep. Sean Ryan, a Democrat from Buffalo, and Sen. George Maziarz, a Republican from Newfane, are co-sponsoring bills to stop the practice.

S&P analyst John Sugden warns that if Pennsylvanias political leaders dont implement meaningful pension reform, the agency will lower ratings for the $545 million the state plans to borrow in general obligation bonds, and the $293 million it has planned for bond refunding.