Class Claims CalPers Let Torrance Cheat

     LOS ANGELES (CN) – The City of Torrance pension fund is $129 million short because the California Public Employees Retirement System allowed the city to underfund its pension fund for five years, a class action claims in Superior Court.

     The complaint claims CalPers allowed Torrance to use an actuarial surplus of $16.4 million to weasel out of paying that much into its employees’ pension fund, and never disclosed the book juggling for the five years it went on – from 1999 to 2004.
     “In part as a result of years of skipped employer contributions and the lack of assumed investment earnings on those skipped contributions, the City Employees’ Pension Fund has become underfunded by $129 million, with both police officers’ and fire fighters’ valuations showing funded ratios (assets/liabilities) of only 76 percent and 78 percent, respectively,” the complaint claims.
     Plaintiffs are represented by Michael Conger of Rancho Santa Fe.

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