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REPORT ON SPECIAL MEETING OF ASSOCIATION With Michael Conger, Attorney in the action against CERS Reported by Adam Saling, SDREA Vice President (Revised
May 12, 2004) The meeting on May 4 was attended by about 82 members. Mr. Conger summarized the history of the action, explained the reasons for it, and talked about the settlement that has been tentatively reached to begin to repair the Retirement Fund. The settlement was worked out in order to enable the City to stabilize the Retirement Fund and continue providing reasonable municipal services. In the settlement, the City agrees to making contributions that are recommended by the Actuary and approved by the Retirement Board. The City will be required to make up the shortages caused by its deficient contributions. Over the next four years these payments will be secured by City owned land that will be sold if the payments are not made according to an agreed-upon schedule. It’s important to note a misleading statement in the article in the Spring 2004 issue of “Free Spirit” titled “Payment of Your Vested Benefits”. According to the statement, the actuarial value of assets is 136% of the liabilities for current retirees and active DROP members. Actually, that reported value of assets is not only for the retired and DROP members, but also for the liability for ALL ACTIVE employees. There was a lively question-and-answer period after Mr. Conger’s presentation, after which he received a standing ovation in recognition of the efforts his firm has made on behalf of the retirees. In the final stages of the lawsuit, a fairness hearing on the settlement is scheduled for May 7, and the final one on May 26. Retirees may submit written objections to the settlement no later than May 21 to: Michael A. Conger, Esquire, P.O.Box 9374, Rancho Santa Fe, CA 92067. Tel. 858-759-0200. Retirees are encouraged to attend the fairness hearing to learn about the judge’s decision which may well impact their pensions in the long run. |
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