Calpers seeks to sue bankrupt San Bernardino over pension payments. “The issue is, do Calpers obligations supersede unsecured bondholders? There’s an awful lot of unsecured bondholders in California. If you put pension obligations to Calpers as secured and senior to unsecured debt, in effect those bonds have been downgraded.” Downgrading drives bond prices down. A lot of those bonds are held by retirees and other savers, either directly or thru funds. You do the math.