Six past and current members of the San Diego municipal pension board faced criminal charges yesterday in connection with a vote that paved the way for rich pension benefits for city workers, which they themselves would receive. þþThe vote by the six, to let the city's contributions to the pension fund lapse, enabled the city to increase the promised benefits to a level that has crippled the city's finances. þþÿPeople in fiduciary positions may not serve two masters at the same time,ÿ the San Diego district attorney, Bonnie M. Dumanis, said in a news conference. As a result of their vote, she said, the six members were projected to receive pensions of $4,017 a month to $10,862 a month, significantly more than they would have otherwise earned. þþMs. Dumanis charged each of the board members with three felony counts of violating a state law that requires officials to recuse themselves or take other protective measures when voting on public business in which they have a personal stake. The charges carry a maximum sentence of three years in state prison.þþArrest warrants made public yesterday said the six officials overruled the advice of the pension plan's actuary and voted to let the city postpone contributions to the fund. The vote in July of 2002 saved the city $25 million to $100 million in contributions. Coinciding with labor negotiations, it allowed the city to improve employees' pensions by hundreds of millions of dollars without having to pay for them for many years.þþThree of the officials charged were Ronald L. Saathoff, president of the San Diego firefighters' union at the time of the vote, and John A. Torres and Sharon K. Wilkinson, who represented the public employees' union. All three are now retired and collecting their pensions. þþThe other three board members charged were representing the city on the pension board: Cathy Lexin, Teresa A. Webster and Mary Vattimo, who was removed from the pension board in February. þþOn Monday, the city announced the resignations of Ms. Lexin, the human resources director; Ms. Vattimo, who had been reassigned recently to a lower-profile purchasing job; and a third official linked to the scandal, Patricia Frazier, the deputy city manager for development services. þþOf the six board members, Mr. Saathoff achieved the largest monthly pension gain, $2,530, to $9,704, according to the district attorney. þþMr. Saathoff's lawyer, Jerry Coughlan, said last night, ÿI was extremely disappointed in the district attorney's office filing these charges. I fully expect to win because there were no violations of the conflict of interest law.ÿ The monthly benefits of the five other defendants increased by amounts of $386 to $1,074, Ms. Dumanis said. Other officials who were serving on the 13-member pension board at the time of the crucial vote were not charged. þþThe city told the unions they could have pay and benefit raises as long as the pension board was willing to delay its contributions and allow the fund to fall below the accepted level of solvency. After negotiating in private, the board approved the plan in a public session. þþÿIt resulted in the addition of hundreds of millions of dollars of new pension benefits that were illegal, and were concealed not only from the taxpayers but also the investment community,ÿ the city attorney, Michael Aguirre, said yesterday in a news conference. þþ
Source: NY Times
