Steven Cuevas / KPCC
San Bernardino City Hall
A U.S. bankruptcy judge has derailed efforts by California's giant pension fund to get paid before other creditors in the bankruptcy of the city of San Bernardino.
The California Public Employees' Retirement System is still opposing the debt-ridden city's eligibility for Chapter 9 bankruptcy protection.
A CalPERS spokesman told the Wall Street Journal that Judge Meredith Jury ruled the millions of dollars in contributions the city owes may have to be paid back as part of the city's final reorganization plan.
A spokesman for the city could not immediately be reached.
San Bernardino, located 60 miles east of Los Angeles, filed for bankruptcy in August after learning it faced a $46 million budget shortfall.