San Diego pension officials charged

San Diego District Attorney Bonnie Dumanis has charged six current and former board members of the San Diego City Employees' Retirement System with felony conflict-of-interest.

According to the San Diego Business Journal, the D.A. claims the six voted for a proposal that granted them increased retirement benefits.

Those facing three charges each, following an 11-month investigation, are Ronald L. Saathoff, John A. Torres, Sharon K. Wilkinson, Mary Vattimo and Terri A. Webster. Cathy Lexin faces two charges.

Each faces a maximum sentence of three years in state prison.

According to information supplied by Dumanis’ office, the SDCERS board on July 11, 2002, voted to approve an amended version of a city proposal, which deferred a percentage of employer contributions and avoided the city’s obligation to make a balloon payment to SDCERS as negotiated under the terms of a prior city agreement.

The amended proposal included a negotiated enhanced retirement benefits agreement between the city of San Diego and three city employee bargaining unions – the San Diego City Firefighters Local 145; Municipal Employees Association; and the American Federal of State, County and Municipal Employees Local 127. Each of the trustees named in the criminal action voted in favor of this proposal and personally benefited as a result of their involvement with the amended proposal, according to Dumanis.

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