Disagreements Get Personal At San Diego Pension Board Meeting; One Trustee: “I Am Very Concerned For My Safety”

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Until now, the major points of contention among trustees of San Diego County’s pension fund have been matters of investment policy.

[Pension360 has covered some of the drama surrounding the fund’s outsourced CIO and its investment strategy.]

But things are getting personal among the fund’s board members. An email exchange obtained by U-T San Diego reveals the extent of the personal issues, particularly between trustees David Myers and Samantha Begovich:

The ongoing divide about investment strategies on the county pension board has spilled over into personal allegations of sexual harassment and racial discrimination, with threats of a potential lawsuit between board members and one trustee saying she fears for her personal safety.

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According to the emails, Begovich told pension system CEO Brian White earlier this month that Myers has harassed and ridiculed her in public and private, and she is afraid he may lose his composure and commit violence against her.

“I am very concerned for my safety now,” Begovich wrote to White on the evening of Feb. 4, the night before a pension board meeting. “I wonder if we can have him not bring his gun to meetings.”

White responded 21 minutes later, telling Begovich he did not understand her statement about fearing for her safety at meetings of the San Diego County Employees Retirement Association.

“Are you saying that you are concerned that Dave Myers might shoot you?” replied White, who shared her private correspondence with the entire board without seeking Begovich’s approval. “I cannot give that any credence. I once again ask if you would like me to arrange a change in your seat with another board member.”

Begovich wrote back in five minutes: “Yes. That is what I am concerned about given his behavior to date and your unilateral decision to release a privileged document with my private conclusions relayed to you.”

More of the surreal email exchange can be read here.

San Diego Fund Trustee May Have Breached Code of Ethics While Lobbying For CIO

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The San Diego County Employees Retirement Association (SDCERA) board voted last week to retain its controversial chief investment officer, Lee Partridge, and his firm, Salient Partners.

The vote was 5 to 4, and trustees on both sides of the vote were adamant about their position.

But did one trustee go to0 far while lobbying to keep Partridge? Board Vice Chairman David Myers may have breached a code of ethics when he sent emails to his subordinates asking that they vouch for Partridge. From the San Diego Union Times:

Before the county pension board met last week and decided to keep its Texas consultant in charge of investments, Vice Chairman David Myers urged retired employees to email the agency to voice support for Lee Partridge and Salient Partners.

Myers’ request also was sent to current workers, including his own subordinates at the Sheriff’s Department. The communications raise the question of whether Myers put undue pressure on rank-and-file employees to send emails on a political matter.

Two weeks ago, when U-T Watchdog asked Myers whether it was appropriate for a senior commander to make such requests of subordinate employees, he declined to respond.

The San Diego County Employees Retirement Association responded on Myers’ behalf, saying he only contacted retirees — not the hundreds of deputies that serve beneath him.

But in emails since obtained under the California Public Records Act, Myers states that he included his own subordinates in his effort to retain Partridge’s services, sending them a three-page letter in support of Partridge’s contract and asking them to advocate for it.

“I sent to all law enforcement members, active and retired,” Myers wrote to pension system CEO Brian White on Sept. 24, adding that all 40 responses he received were positive. “I am asking them to also communicate that message via email to SDCERA.”

There may be further emails from Myers to employees on the subject. The county has delayed release of five additional emails pending input from the pension system.

Those actions could be in breach of the SDCERA Code of Ethics, according to U-T San Diego:

The SDCERA Code of Ethics says trustees must remain objective and says “misuse of influence” is unacceptable. The code does not specify what types of misused influence are at issue, and agency officials declined to discuss Myers’ actions.

Jan Caldwell, a spokeswoman for the Sheriff’s Department, said there is no issue with Myers’ communications with front-line staff.

“The San Diego County Sheriffs’ Department does not have a policy or procedure that would preclude an employee representative of the County’s Retirement Association from communicating to county employees on matters of interest to county employees relating to their retirement system,” she said.

Bruce Cain, a political-science professor at Stanford University, questioned the wisdom of a higher-up asking subordinates to become activists in any cause.

“Typically you don’t want senior people engaging in this kind of thing because it could be perceived as pressure,” Cain said.

Max Neiman, senior research fellow at the Institute of Governmental Studies at the University of California, Berkeley, agreed, saying, “I would find that unseemly, if not a violation of ethics or the law.”

SDCERA spokesmen have maintained that Myers didn’t violate any ethics codes.