San Diego City Employees' Retirement System filed a malpractice suit against the law firm of Hanson, Bridgett, Marcus, Vlahos & Rudy and partners Robert Blum and Constance M. Hiatt. The suit, filed in San Diego County Superior Court, claims the firm recommended that pension officials adopt an agreement limiting the city's contributions to the plan and lower the floor for the actuarial funded ratio to 75% from 82.3%. The lawsuit alleges the agreement was improper because it allowed the city to underfund the $2.7 billion pension fund by paying a lower contribution rate for 10 years. The pension plan was 68% funded as of January 2004. Participants in the San Diego pension plan filed suit against the law firm earlier.
Robert Blum and law firm spokesman Jim Nichols did not return calls for comment by press time.