San Diego Pension Scandal
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The San Diego City Employee's Retirement Pension Fund was the source of a multiyear scandal[1] and has been an ongoing financial concern for the city of San Diego, California.
[edit] Underfunding
Over a period of years the city was under pressure both to allocate less money to the fund but also to increase benefits to city employees. Problems arose in 2000 and 2001 when the value of investments (and therefore the fund itself) decreased, triggering a safety requirement of further funding. The scandal itself arose as a result of 2002 votes by the pension board and then the city council that essentially lessened funding requirements and increased benefits (including to several members of the pension board). The underfunding in turn was not disclosed in municipal bond sales until exposed by whistleblower Diann Shipione.
[edit] Aftermath
The scandal had a widespread fallout in the city's politics and financial situation. [2] Among them was the downfall of newly reelected mayor Dick Murphy to be replaced by Jerry Sanders, the election of controversial city attorney Mike Aguirre, a complete change of the pension board itself [3], federal investigations of the bond sales, and criminal charges on several of the pension board members personally.[4]
[edit] References
- ^ "Pension troubles: A timeline", San Diego Union-Tribune.
- ^ "San Diego's Pension Crisis: Archive", San Diego Union-Tribune, 2006-01-12.
- ^ "Pension board in flux", San Diego Union-Tribune, 2006-01-12.
- ^ "5 current and former pension figures charged", San Diego Union-Tribune, 2006-01-06.
