Toni Atkins, acting mayor of San Diego, on Wednesday called for the resignations of three officials of the $3.8 billion San Diego City Employee Retirement System. Ms. Atkins said the officials — Lawrence Grissom, administrator; Lori Chapin, in-house counsel; and Peter Preovolos, board chairman — should resign immediately, based on a previously privileged memo by Ms. Chapin asserting that agreements between the pension system and city officials allegedly triggered the system's $1.7 billion deficit and were "a breach of fiduciary duty."
Of the three, the only individual city leaders might be able to remove is Mr. Preovolos, who is a City Council appointee, acknowledged George Biagi, the acting mayor's press secretary. The council failed to obtain a majority vote to remove Mr. Preovolos but the acting mayor is expected to ask the council to bring the matter up again as early as next week, he said. Rebecca Wilson, communications specialist with the system, said "Mr. Grissom and Ms. Chapin serve at the pleasure of the (pension system) board of administration" and the board fully supports them. Pension system officials also believe the City Council does not have the right to remove Mr. Preovolos, she added.
Separately, a board subcommittee chose Milliman, Buck Consulting and Cheiron as finalists in the system's search for a new auditor, Ms. Wilson said. Incumbent Gabriel Roeder Smith declined to rebid without providing an explanation, she said. A selection is expected at the board's Oct. 21 meeting.
