US - The Securities and Exchange Commission (SEC) has settled its civil fraud case against Thomas J. Saiz, the former outside auditor of San Diego.
Saiz and his firm, Calderon, Jaham & Osborn (CJO) claimed the city's funding method contained provisions to ensure the sustainability of the pension fund at a certain level, the pension's actuary believed the City's funding methodology top be excellent and the under funding of the pension plan was funded through a reserve.
All of the above statements were later proven to be false and the SEC alleged Saiz and the firm were fully aware of this at the time.
Current city attorney of San Diego, Michael Aguirre, said: "The SEC's action should raise a cautionary flag for City officals as we prepare to finalise the City's 2005 and 2006 financial statements."
The revelations of financial deception forced San Diego to exit the municipal bonds market, although the City hopes to be able to issue them again early next year. Saiz was ordered to pay a $15,000 fine, which he did not contest.
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.