"A group of Stockton retirees has filed suit in U.S. Bankruptcy Court in Sacramento asking for a restraining order ... The city informed retirees by letter that they must pay their premiums by July 30 or 'medical coverage will be canceled retroactive to July 1.' The move is part of the city's 'pendency plan' aimed at keeping it solvent while it seeks protections from creditors under federal bankruptcy law.... Dwane Milnes, who was Stockton's city manager from 1991 to 2001, has been widely criticized for giving retirees full retirement healthcare in return for agreements from unions not to seek raises. The unfunded liability for those benefits is $417 million. Milnes now represents the retirees in bankruptcy-related negotiations."  MORE >>