Aguirre urges city employees to reinvest
Tuesday, March 7, 2006
According to Aguirre, since the city's pension system is only 58 percent funded, an investment that follows Wall Street's ups and downs would be safer.
He suggests employees pull out of a program where they purchased years of service credits while the pension system still has the money.
Aguirre: "It's not a question so much of if it's illegal, it's a question of if it's a wise move financially, and I think if you can get 100 cents on the dollar out on your purchase of service credits I think that will work to your advantage."
The employees' union advises its members not to follow Aguirre's advice.
If everyone who purchased service credits pulled their money out, the pension system would loose $121 million, but also shed $300 million in liability.
The Pension system has balked at requests by councilwoman Donna Frye to refund her service credit purchases. Alison St John, KPBS news.
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