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City Attorney Mike Aguirre sued the retirement board today for deciding last week to allow the pension fund to absorb the $146 million cost of a controversial benefit.
Instead of requiring employees who purchased service credits to pay the difference between the benefits’ cost to the pension system and the bill employees paid, the retirement board voted Friday to let the trust fund make up the discrepancy through investment returns and payments by the city.
Aguirre asked the court to let the City Council set aside the board’s decision and make its own. To that end, Aguirre proposed legislation months ago that would require the retirement system to only pay out to an employee a benefit equal to the amount they paid in. The service credit benefit was designed to be cost-neutral to the city, Aguirre said.
The proposal had gone unheeded by the council.