MANHATTAN BEACH : City Will Pay $199,500 to Settle Pension Suit
Manhattan Beach will pay a former city manager $199,500 to end a legal battle over the terms of his pension.
David J. Thompson retired in 1990 with an annual pension of $139,000 a year--$50,000 a year more than he had been earning on the job.
Although the City Council initially approved the deal, members later said they did not know until after his departure that the agreement allowed him to use accrued vacation and sick leave to inflate the base salary on which his pension was based.
In 1991, the council slashed the pension by $60,000 a year, and Thompson sued the city and individual council members. He claimed breach of contract and said officials had the opportunity to question or change his pension before he retired.
A trial was to begin April 14 but a tentative settlement was reached. The accord was signed Tuesday. Thompson could not be reached for comment.
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