City Attorney Mike Aguirre has called a special closed session meeting of the City Council for Wednesday to discuss a potential deal that would partially settle the city of San Diego’s major pension case.

Aguirre said the potential settlement would only be between the city and the San Diego City Employees’ Retirement System and will not include the labor unions that are also ensconced in the litigation, which will begin trial this week.

The city attorney would not discuss the content of the potential settlement, but it appears the retirement system’s only outstanding issue in the case is to recover the funds it was shorted as part of the 1996 and 2002 pension deals Aguirre argues are illegal.

Aguirre has said that the city should pay back the amount it evaded between 1996 and 2002, but only after the benefits he alleges are illegal are rolled back.

The city struck a tentative settlement in June after an ex-worker sued to recover $175 million for the pension system as a result of the pension deals.

SDCERS has already won its right to retain its own legal advisor and to dispense the challenged benefits to employees until the city or a judge says otherwise. SDCERS attorney Michael Leone said he thought the underfunding issue would be the pension board’s last remaining issue in the conflict.

The public will have a chance to comment on the case at 8 a.m. on the 12th floor of the City Administration Building, located at 202 C St. Closed session


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