From biz reporter Dale Kasler's story in today's Bee:
CalPERS must now confront a powerful group of foes in its multimillion-dollar fight with bankrupt San Bernardino: the city's bondholders.
A group of major bondholders filed a 114-page legal protest against CalPERS on Monday, saying the pension fund is trying to win preferential treatment in San Bernardino's case. CalPERS has been demanding the right to sue the city, which has fallen behind on $6.9 million in payments to the giant pension fund after filing for Chapter 9 bankruptcy protection in August.
The San Bernardino case and another municipal bankruptcy involving the City of Stockton are testing whether public pension protections or bankruptcy laws reign supreme.
If you haven't read it already, check out Dale's story then peruse the court filing he sent to The State Worker: