San Bernardino Seal

By Ryan Hagen, The Sun
Posted: 10/02/13, 6:45 PM PDT |

RIVERSIDE >> Employees’ retirement records still don’t reflect time worked since January, meaning those who retired now would receive retirement benefits as though they had worked eight months less, an attorney for the California Public Employees’ Retirement System said in U.S. Bankruptcy Court on Wednesday.

The problem was discovered in August and reported to the judge at the Sept. 4 bankruptcy hearing, but CalPERS attorney Michael Lubic said that as of two weeks ago the city still hadn’t done what it needed to do.

“Simply put, in order to move forward, the city must input payroll in accordance with applicable law,” Lubic said.

Lubic contends that the law prohibits the increased amount that city employees have had to pay into their retirement — as opposed to the city paying that portion — under contracts that took effect Feb. 1.

City officials disagree with that interpretation of the law, but say they’ve already worked out an agreement with CalPERS administrators that would make sure the record known as a “service credit” got updated.

In fact, City Manager Allen Parker made that agreement in a meeting with CalPERS’ chief executive officer and chief financial officer 13 days ago, City Attorney James F. Penman said after the hearing.

“Evidently, he (Lubic) has knowledge of how things progressed because he started his remarks very carefully by saying ‘up until two weeks ago,’” Penman said. “They’re being very selective in how they present things to the court.”

A statement filed with the bankruptcy court Tuesday by the city’s bankruptcy attorney, Paul Glassman, said an “accommodation” was still being worked out.

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