State auditor

State Auditor Calls Worst-Case Scenario ‘Unsupported and Likely Overstated’

It’s been a while since Mayor Chuck Reed’s opponents won a battle in San Jose’s pension reform war. But a report released Tuesday by the state auditor’s office says that city officials may have played a little too fast and loose when stating the worst-case scenario for San Jose’s unfunded liability for retirement benefits. In the report, State Auditor Elaine Howle writes that a review of the mayor and other councilmembers’ use of the number $650 million, when discussing the city’s potential liability for retiree pensions and health benefits, was “unsupported and likely overstated.”