The bankrupt city of San Bernardino filed a plan with the bankruptcy court that aims to help nurse the city back to fiscal health by cutting $26 million out of employee compensation and deferring $35 million in upcoming payments, including $13 million in payments to Calpers for pension credits earned by employees and $3.4 million in payments to holders of the city's pension obligation bonds. As the chart below demonstrates, much of the savings in compensation comes from cutting the city's workforce, not filling current vacancies, and reducing or cutting benefits, including the subsidy for retiree health care insurance (OPEB benefits).
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