Reporting from Sacramento —
The failure of the state's embattled pension system to take action after learning four years ago of Bell city officials' runaway salaries has put the fund under another unwelcome spotlight.
The state attorney general says he is shocked that nobody at the fund alerted law enforcement. Professional auditors are perplexed by the lack of follow-up that even board members at the California Public Employees' Retirement System are at a loss to explain.
During a routine audit in 2006, CalPERS learned that Bell City Manager Robert Rizzo had received a 47% salary increase the year before, driving his pay up to $442,000. CalPERS is supposed to stop pay spikes that can unduly enlarge retiree pensions, but officials signed off on Rizzo's raise because Bell's assistant city manager and City Council members were also getting enormous boosts. CalPERS took no further action. Rizzo's salary would eventually grow to nearly $800,000.
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