San Diego judge allows transfer of pension overcharging case to L.A. despite city’s objection

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A lawsuit filed by the San Diego city attorney against its pension system will be transferred to another venue, according to a ruling by San Diego Superior Court Judge Joan Lewis.

The transfer was sought by the San Diego City Employees Retirement System and local labor unions because they felt that the recent damaging stories in the local press about alleged abuses in the pension system would prevent them from getting a fair trial.

The city tried to stop the transfer saying the request was not made timely, and only for the purpose of delaying the trial. The case was originally scheduled to begin on April 29 in San Diego.

City Attorney Jan Goldsmith brought the lawsuit last May, based on an interpretation of the city charter requiring that workers and the city contribute “substantially equal” amounts into the employees pension plan.

The lawsuit claims that the city has been overcharged by tens of millions of dollars each year by pension system officials.

“In light of the constant media attention that San Diego’s pension funding has received, we believe it is prudent to change venues to ensure a fair trial and we’re very pleased that Judge Lewis agreed with our position,” pension official Mark Hovey said.

Goldsmith told the San Diego Union-Tribune that “The labor unions and their supporters see this case as such a threat that they pulled out all the stops to delay, confuse and bury it — anything to avoid a decision on the merits.”

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