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At least 102 City retirees have been paid a total of $8.2 million in excess of Internal Revenue Service limits,according to City Attorney Mike Aguirre, quoting an August 22 letter from the City's pension system actuary. Aguirre plans to release more information on the matter next week. The city council in 2001 set up a so-called Preservation of Benefits Plan to pay those excess benefits. However, The San Diego City Employees' Retirement System paid the $8.2 million in violation of the IRS code. The excess benefits related to the City's Deferred Retirement Option Plan (DROP), by which employees effectively double their pay in their last five years and retire with both a monthly stipend and a fat lump sum. Among the 102 employees who were paid excess benefits were former City Attorney Casey Gwinn and former Deputy City Manager Bruce Herring. City Councilmember Donna Frye initially brought up the IRS irregularities.
At least 102 City retirees have been paid a total of $8.2 million in excess of Internal Revenue Service limits,according to City Attorney Mike Aguirre, quoting an August 22 letter from the City's pension system actuary. Aguirre plans to release more information on the matter next week. The city council in 2001 set up a so-called Preservation of Benefits Plan to pay those excess benefits. However, The San Diego City Employees' Retirement System paid the $8.2 million in violation of the IRS code. The excess benefits related to the City's Deferred Retirement Option Plan (DROP), by which employees effectively double their pay in their last five years and retire with both a monthly stipend and a fat lump sum. Among the 102 employees who were paid excess benefits were former City Attorney Casey Gwinn and former Deputy City Manager Bruce Herring. City Councilmember Donna Frye initially brought up the IRS irregularities.