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Shipionne takes witness stand in pension board hearing

Whistleblower Diann Shipionne took the witness stand Monday in the first day of hearings into alleged felony conflict of interest on the San Diego city pension board. KPBS reporter Alison St John has

Whistleblower Diann Shipionne took the witness stand Monday in the first day of hearings into alleged felony conflict of interest on the San Diego city pension board. KPBS reporter Alison St John has more.


Shipione was the trustee who blew the whistle on the pension board's agreement in 2002 to let the city continue under funding its pension plan while raising benefits. Shipionne said it was openly acknowledged at pension board meetings in 2002 that the benefit increases would only be given if the trustees agreed to the city's under funding proposal.


Shippione: "To link a benefit increase to the board modifying its funding policy in a detrimental fashion appeared to be corrupting the process of the normal way a pension board is supposed to function."

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Six former pension board members are indicted. Their lawyers argued the city attorney and others had examined the conflict of interest question as early as 1995, and advised trustees they were not violating state law, because city pensions are a form of deferred salary and thus exempt. Alison St John, KPBS news.