CORRECT: Puerto Rico Judge Strikes Down Pension Law

CORRECT: The judge overseeing Puerto Rico’s record bankruptcy case nullified a pension law that would have barred the island’s financial oversight board from cutting retirement benefits.

• Puerto Rico’s financial oversight board in July asked the bankruptcy court to invalidate Act 7, saying the law fails to comply with the commonwealth’s multi-year fiscal plan and increases Puerto Rico’s pension liabilities by $5 billion
• U.S. District Court Judge Laura Taylor Swain agreed with the board on Wednesday, ruling that Act 7 creates “active barriers” in the board’s efforts to ensure compliance with the fiscal plan and successful implementation of a proposed debt ...