https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
  • Home
  • Co-op Solutions
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcast
  • Resources
    • Back
    • Resources
    • Webinars
    • White Papers
    • Events
    • How to Contribute
    • Municipal Cost Index – Archive
    • Equipment Watch Page
    • American City & County Awards
  • Magazine
    • Back
    • Digital Editions
    • Reprints & Reuse
    • Advertise
  • About Us
    • Back
    • About Us
    • Contact Us
    • Privacy Statement
    • Terms of Service
American City and County
  • NEWSLETTER
  • Home
  • Co-op Solutions
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcasts
  • Resources
    • Back
    • Webinars
    • White Papers
    • Events
    • How to Contribute
    • American City & County Awards
    • Municipal Cost Index
    • Equipment Watch Page
  • Magazine
    • Back
    • Digital Editions
    • Reprints & Reuse
    • Subscribe to GovPro
    • Manage GovPro Subscription
    • Advertise
  • About Us
    • Back
    • About Us
    • Contact Us
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
acc.com

Economy


Article

California city overpays pensions for years, asks retirees for money back

California city overpays pensions for years, asks retirees for money back

San Jose, Calif., officials have discovered that the city’s pension plan has overpaid hundreds of public safety employees for the past 20 years. Now, the city is asking for its money back.
  • Written by Jason Axelrod
  • 9th January 2017

San Jose, Calif., officials discovered that the city’s pension plan has overpaid hundreds of public safety employees for the past 20 years. Now, the city is asking for its money back.

A 2009 audit found that the city had been overpaying 300 firefighter and police officer pensions since 1998, NBC Bay Area reports. However, the city took seven additional years to confirm the numbers. 

“It’s taken us several years to replace the incorrect data with a complete set of new data so the calculations could be completely accurate,” San Jose Spokesman David Vossbrink told San Francisco TV station KPIX 5.

City officials have now begun contacting the retirees to pay the money back, although no deadline has been given, the San Jose Mercury News reports. IRS rules mandate that retirement trust funds must recover money if it is mistakenly paid.

"The goal is to have a process that is fair and equitable and will cause as little discomfort to the retirees, recognizing this is an error on the part of several city departments that happened long ago," Vossbrink told NBC Bay Area.

The overpayments range from a few hundred dollars to $30,000, while some city employees were reportedly underpaid, according to NBC Bay Area. The employees were overpaid about $1 million in total, the Mercury News reports.

While Vossbrink said the finance department, the retirement office and retirees hold responsibility for the issue, San Jose Retirement Services Director Roberto Peña said the city gave him incorrect payroll information, according to the Mercury News. “The board is committed to a fair, reasonable and legal resolution to this matter,” he told the newspaper.

City officials have begun hosting several public meetings for all affected retirees that will detail how they can repay the pension funds, KPIX 5 reports. The first meeting was held on Jan. 5. 

At a recent city hall meeting, all retirees who attended said they never noticed extra money in their checks.

“When I received my checks, I just accepted it. I had no way to figure out if it was right or wrong,” Kathy Ragland told the Mercury News. “I didn’t have access to payroll records.”

While some city employees have expressed willingness to pay the money back, others have not. Still others have said that the fiasco has lowered their trust in city administrators.

“You basically hung all these people out to dry,” Jeff Weber, a San Jose Fire Department retiree, said at the meeting. “These people are taking the money and you’re not letting them know about this. I’m really not ready to give you guys my money. What guarantee do I have in 10 years you won’t show up at my door and say we were wrong again?”

_____________

To get connected and stay up-to-date with similar content from American City & County:
Like us on Facebook

Follow us on Twitter
Watch us on YouTube

Tags: Economy News Article

Related


  • How the City of Fullerton navigated adding candidates to ballots remotely
    This time last year, we were all looking forward to 2020: the start of a new decade and big elections (federally and locally) were just a few of the things we were excited about as we closed out the year. Little did we know, the beginning of the end of “normal” would happen two month […]
  • D.C. police begin identifying Capitol rioters
    Washington, D.C.’s Metropolitan Police Department (MPD) is working with the Federal Bureau of Investigation (FBI) to identify the supporters of President Donald Trump who stormed the U.S. Capitol on Jan. 6. “MPD seeks assistance in identifying persons of interest responsible for Unlawful Entry offenses that occurred yesterday on US Capitol Grounds, 100 block of 1st […]
  • Person working on laptop computer
    Embracing digital within local government in 2021
    While COVID-19 has brought on a litany of challenges, it has also shown government leaders the need to employ the right digital solutions for their constituents
  • Signs begging for change
    The 21 neediest American cities in 2021
    Every city has its share of economic issues, but economic disadvantages affects some cities more than others. Is your city among the neediest cities in the U.S.?

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Will digital transformation of city procurement hold up beyond the pandemic?
  • Minneapolis cuts millions from police budget
  • Governments must help consortia drive autonomous progress
  • St. Lucie county adds foam polystyrene recycling program

White papers


How a unified HR system helps one public safety organization manage crews, payroll, and more in a single platform

7th January 2021

Your Roadmap to COVID-19 Funding

18th December 2020

The One Where Everyone Wins: A Mutually Beneficial Contracting Method

10th December 2020
view all

Events


PODCAST


Young Leaders Episode 4 – Cyril Jefferson – City Councilman, High Point, North Carolina

13th October 2020

Young Leaders Episode 3 – Shannon Hardin – City Council President, Columbus, Ohio

27th July 2020

Young Leaders Episode 2 – Christian Williams – Development Services Planner, Goodyear, Ariz.

1st July 2020
view all

Twitter


AmerCityCounty

The latest episode The Young Leaders Podcast focuses on Cyril Jefferson. Cyril is the youngest African American to… twitter.com/i/web/status/1…

27th October 2020
AmerCityCounty

Hillsboro, Oregon is pioneering a new #renewableenergy generation technology through a partnership with… twitter.com/i/web/status/1…

27th October 2020
AmerCityCounty

The impact of the #COVID19 pandemic on #telework was swift and profound. Now, the big question is whether – and to… twitter.com/i/web/status/1…

26th October 2020
AmerCityCounty

Get ready for the can't-miss webinar on how to kickstart your efficiency improvement plan with Luke Anderson of… twitter.com/i/web/status/1…

26th October 2020
AmerCityCounty

Among all states headed into the 2020 general election, which ones have voting populations that are the most demogr… twitter.com/i/web/status/1…

26th October 2020
AmerCityCounty

We want to hear from you! Share your thoughts in our readership survey to help us shape future content so that we c… twitter.com/i/web/status/1…

23rd October 2020
AmerCityCounty

See how cities different approaches to distribute masks in their communities >> spr.ly/6010GAPLa

23rd October 2020
AmerCityCounty

While #facialrecognition is a powerful tool that can improve law enforcement efficiency, that doesn’t necessarily t… twitter.com/i/web/status/1…

23rd October 2020

Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Resale Insights Dashboard

The Resale Insights Dashboard provides model-level data for the entire used equipment market to help you save time and money.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital audience? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • IWCE’s Urgent Communications
  • IWCE Expo

WORKING WITH US

  • About Us
  • Contact Us

FOLLOW American City and County ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookies Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X