continued Another who expressed opposition to underfunding, then caved in, is the former outside attorney for the pension system, San Francisco's Robert Blum. The city, following Conger's lead, filed suit against Blum for giving bad advice. Although all details have not been worked out in court, Blum will settle for the amount of his insurance. After legal expenses, the city should get about $11 million, says Conger.
But why did both outside actuary Roeder and outside lawyer Blum go against their earlier disapprovals? "We should try to find out who twisted their arms," says Shipione. She objects to the Blum settlement. "What happened between June of 2002 and November of 2002 that caused Blum to eliminate from his letter to the retirement system about 45 reasons why not to do the [underfunding]?" she asks. "It appears there was a great motivation to settle with Blum so that no discovery would be done, no depositions would be taken, questions like that would not be answered."
Outsiders knowing inside dirt get special treatment.