Wow, I had not grasps this fully,
This really could be a watershed moment.

A federal judge earlier this week gave the green light to Stockton, Calif. to restructure under bankruptcy protection despite protests from creditors. The judge signaled that Stockton may have to cut payments to its pension fund, which could set a precedent for other cities. The fight also has pitted California’s pension system, CalPERs, against other bondholders and the Wall Street firms that insure them.