Law to Curb Pension Abuse

The Manhattan Beach City Council has passed an ordinance and authorized a study, both designed to avoid abuses of the city retirement system such as those involving the pension of former City Manager David J. Thompson.

The ordinance prohibits payment of city retirement benefits inconsistent with the state public employees retirement law and requires that the council be notified if any employee is to receive more than $1,000 a month.

The study, expected to be completed in February, will evaluate the city retirement system, along with salary, vacation and sick leave policies, and determine whether the staff provides the council with complete information when it makes decisions in these areas. Bids are being solicited for the study, which has been budgeted at $100,000.

Thompson’s city retirement benefit was reduced by $60,000 a year this week after the council ruled that he inflated his final-year compensation in violation of rules of the state Public Employees Retirement System (PERS). The council also said Thompson withheld information about the cost of his retirement package.

As a result of the action, Thompson will receive $22,442 from the city, in addition to his $57,156 state benefit. He also must repay $78,941 to the city for benefits he received since his retirement in May, 1990.