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.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.