PLAN INFORMATION
The plan administered by CalPERS is a “governmental plan” as defined in section 414(d) of the Internal Revenue Code of 1986, and is not subject to the provisions of section 414(p) of the Internal Revenue Code and section 206(d) of ERISA which govern “qualified domestic relations orders.” The terms of the plan are set forth in the California Public Employees’ Retirement Law (“PERL”), which can be found at section 20000, et seq., of the California Government Code.
I would think that California could declare bankruptcy in regards to pensions and bonds under Chapter 9.
This should do it… Game, Set, Match…
Lucky In OC[/quote]
Just out of curiosity, how the hell do retirement plan rules related to QDRO’s, definitively decide that a state can declare bankruptcy? I see no connection. California is not getting divorced. (The question is still up in the air whether gays can marry. I don’t think there’s any question as to whether or not states can marry.) Beyond that, California is not a participant in the plan. CalPers isn’t going bankrupt any time soon. And if it did, the state would not be a creditor, but rather a debtor to the plan.
(as an aside, i think the stronger evidence is on the side of a state not having any rights under federal bankruptcy laws, the stronger evidence is on the side of the receivership plan. Best of my knowledge, neither has ever happened, so it’s very possible neither is exactly the way it would actually play out.)
