Stockton, Calif. Goes Bankrupt, Raising Question: Who Gets Paid?

Stockton, Calif. Goes Bankrupt, Raising Question: Who Gets Paid? | CNS News:
"But the case is also being watched closely because it could answer the significant question of who gets paid first by financially strapped cities — retirement funds or creditors.
"I don't know whether spiked pensions can be reeled back in," U.S. Bankruptcy Judge Christopher Klein said while making the ruling.
"There are very complex and difficult questions of law that I can see out there on the horizon."
The potential constitutional question in the Stockton case is whether federal bankruptcy law trumps a California law that says money owed to the state pension fund must be paid."