Former Bell CAO Robert Rizzo is not entitled to hundreds of thousands of dollars in retirement benefits he is seeking because the sum is based on an exhorbitant salary far beyond the norm, according to an audit by the state's retirement agency.
Rizzo's annual salary and benefits of nearly $800,000 was "over-reported," according to documents obtained from the California Public Employees Retirement System.
Pension benefits should be "based upon the city's most recent publicly available pay schedule" for the CAO position, which is $85,200 per year, the agency found.
Under that formula, Rizzo would be eligible for a $51,722 annual pension, said Ed Fong, spokesman for CalPERS.
That's a far cry from the $650,000 to $1 million various calculations estimated he might receive based on the pay he was drawing when he was kicked out.
Rizzo, along with his assistant Angela Spaccia, former Mayor Oscar Hernandez, and five former council members were ousted in March after residents learned they'd been bilked of some $5.5 million in inflated salries and benefits.
The state report was welcomed by Bell's newly minted leadership.
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"That's great news," said Bell Councilwoman Ana Maria Quintan.
Bell has been working hard to recover in the wake of the scandal, Quintan said. She hopes Rizzo does not receive any retirement benefits from the city.
"If he obtained funds through fraudulent means, he should not get those resources," Quintan said. "I don't think you should be entitled it."
But Rizzo's attorney, James Spertus, said CalPERS' move is illegal.
"Rizzo's contracts were lawfully approved, and valid contracts," he said "Everybody agrees."
Spertus said Rizzo's benefits should be based on his 2010 salary, which he estimated to be around $765,000.
"No court will stand by CalPERS if this process goes to litigation," said Spertus.
In addition to Rizzo, Spaccia and other former councilmembers could collect considerably less.
Spaccia will see around $43,000 instead of $250,000, Fong said.
Several former councilmembers who were paid nearly $100,000 per year will retirement payments drop between $1,000 to $2000 per year, he said.
Former city officials are facing multiple felony counts of fraud and corruption as well as misappropriating public funds.
Attorneys for several Bell officials said they plan to appeal the decision.
