After significant deliberation, the SDCERS Board of Administration decided that it was in the best interest of the fund and its members to settle the Italiano/MEA legal case rather than incur potentially greater litigation costs and risk a jury verdict in favor of Ms. Italiano. This was a legal settlement, not a payment of a benefit to Ms. Italiano.
The City Attorney objected to this settlement and has proposed an ordinance to remove SDCERS' settlement authority as is provided to the SDCERS Board by both the City Charter and the California Constitution.
Click on the documents below to see the July 11, 2011 memorandum, together with the draft ordinance from the City Attorney's office; SDCERS General Counsel Elaine Reagan's associated response on July 22, 2011; and the Mayor's July 25th, 2011 endorsement of the proposed ordinance.