San Jose pension trustees try to defy council on bonuses

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Source: San Jose Mercury News

San Jose police and firefighter pension trustees lost a dramatic bid Thursday to distribute bonus checks to retirees in defiance of a City Council move to suspend the extra payments amid a $2 billion retirement fund shortfall.

The council in October voted to suspend the bonus checks -- which are paid out in years the funds exceed their targeted returns -- for eight months while the city seeks to reform its pension system. Council members cited a recent audit that found the two pension funds are on track to run out of money unless the cash-strapped city pumps in millions of new tax dollars, which would further erode public services.

Three trustees representing current and retired officers and firefighters voted Thursday to take up to $1 million from the pension fund and distribute it as an "extra check" to more than 1,700 retirees and their survivors...

City council member Sam Liccardo who sits as a trustee said:
"We have a responsibility to all of the families and all of the plan members, folks who are going to be shortchanged if this plan becomes insolvent," Liccardo said.


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