San Jose facing state audit over pension costs

March 8, 2012 7:59:29 AM PST
San Jose is facing a state audit over accusations that officials who want to cut employee pension costs deliberately overstated those costs.

The San Jose Mercury News (http://bit.ly/xQB6oL ) says the Joint Legislative Audit Committee approved the audit on Wednesday. The audit could cost taxpayers around $200,000 and could begin in a week.

San Jose officials question the need for an audit. City Manager Debra Figone says the city pension funds already have passed several independent reviews.

San Jose's employee retirement bill has more than tripled in a decade to around $245 million. The City Council this week agreed to put a measure on the June ballot that would reduce pensions for new hires and make current employees pay more for pensions unless they switch to a cheaper plan.


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