(Bloomberg) -- The California Public Employees’ Retirement System said it will appeal a judge’s ruling that found the city of San Bernardino eligible to remain in Chapter 9 bankruptcy.Calpers said in a statement yesterday it will file its appeal on the grounds that San Bernardino didn’t consider alternatives to its bankruptcy filing, didn’t file for Chapter 9 in good faith and didn’t provide reliable financial information.U.S. Bankruptcy Judge Meredith Jury in Riverside, California, last month overruled the pension fund’s objection and found in the city’s favor, saying it needs the “breathing space” afforded by bankruptcy to renegotiate debts.San Bernardino, located about 60 miles (97 kilometers) east of Los Angeles, sought bankruptcy protection from creditors on Aug. 1, 2012, blaming a fiscal emergency brought on by a $46 million budget shortfall. Since filing, the city has fought its employee unions in an effort to cancel their contracts and quit making certain payments to Calpers, the biggest U.S. pension fund.The case is In re San Bernardino, 12-bk-28006, U.S. Bankruptcy Court, Central District of California (Riverside).

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