OXNARD : Council Decides to Hold Pension Funds

The Oxnard City Council has agreed to accept a one-time credit of $4.36 million in surplus retirement funds from the state, but was warned by a city firefighter that the money may have to be returned.

Distribution of the funds was authorized by the state Legislature during budget negotiations last year, when the Legislature eliminated two cost-of-living accounts within the Public Employees Retirement System.

The Legislature ruled that the funds would be returned to employers such as Oxnard who had paid into the system, but specified that the money must be used to offset the city’s pension contributions. Oxnard is scheduled to pay $3.45 million in pension contributions for its employees this year.

But the refund was challenged by 20 individuals and employee organizations statewide, who filed a lawsuit contending that the action was unconstitutional, said Rudy Muravez of Oxnard’s Finance and Management Services.

As a result, the council agreed Tuesday to put a matching amount of revenue into a special account, where it will remain until the litigation is resolved. If the courts rule against the employees’ suit, then the money in the account would be distributed to the city’s general fund and other accounts, City Manager Vernon Hazen said.

Speaking out against the refund Tuesday was Bill Gallaher, representing the Oxnard Firefighters Assn.

Gallaher told the council that the pension funds were taken without the approval of the employees whose pensions are at stake. “We feel the money was stolen from us, and we ask the City Council not to be an accessory to this crime,” Gallaher said.