The Del Mar Times reports that SDCERS sought payment from the city for pension benefit increases granted as part of agreements in 1996 and 2002 that led to the underfunding of the retirement system. In his ruling, California Superior Court Judge Jeffrey Barton found that SDCERS failed to comply with the city charter in demanding contributions from the city that weren’t approved by the pension board.
In 2008, then-City Attorney Michael Aguirre’s attempted to have repealed approximately $900 million in benefits he claims were illegally granted in 1996 and 2002, but the Superior Court dismissed the case (see Aguirre Loses Appeal to Eliminate City Pension Benefits).
In a statement, City Attorney Jan Goldsmith said the claim was already resolved through the settlement of two lawsuits more than five years ago that required the city to pay more into the retirement system, according to the news report.
SDCERS can amend its case, according to Goldsmith.
« Court Finds Principal not a Fiduciary in Case Involving Rollover of 401(k) Accounts