San Diego’s City Attorney, Michael Aguirre, on Friday asked the City Council to reject additional funding for the independent risk firm, Kroll, Inc. and law firm Wilkie, Farr & Gallagher, who are investigating the City’s finances, including disclosure practices relating to the $1.4 billion shortfall in the City’s pension fund. The two firms have said they will be unable to conclude their work by December as scheduled, because the City’s data search has not produced all of the records they need, the San Diego Union-Tribune reports.

The Social Security Administration announced a 4.1 percent cost of living adjustment for more than 52 million retired and disabled recipients last week. Checks will increase an average of $39 starting in January. This is the largest increase since the 5.4 percent advance in 1991. Last year’s increase was 2.7 percent.

The Pension Benefit Guaranty Corporation (PBGC) reports that its claims covering private pension plans could increase the federal deficit over the next decade according to the Associated Press. Senate and House members have proposed bills intended to reinforce this nation’s pension system, however, the agency is concerned about its mounting obligations as it takes over more collapsed plans.

In 2006, seniors and disabled citizens will be paying another $10.30 over the $78.20 that they are already pay this year. This represents a 13.2 percent increase for Medicare Part B premiums.

New research shows that pension plans in the United States (US) are four times more likely to be fully funded than occupational in the United Kingdom (UK). In a company press release, Aon Consulting reports that only 5 percent of UK pension plans are fully funded compared to 20 percent of US pension plans for year-end 2004 based on company annual reports.

The Governmental Accounting Standard Board (GASB) published a Guide to Implementation of GASB Statements 43 and 45 on Other Postemployment Benefits last week. The Guide assists preparers and auditors or governmental financial statements and their advisers in implementing accounting and reporting standards recently issued by the GASB regarding healthcare and other non-pension benefits for retirees.

Like a sudden summer thunderstorm, the surprising number of ERISA-related lawsuits filed last year – more than 11,000 according to the Administrative Office of the U.S. Courts – seems to have blown in out of nowhere.In reality, the Department of Labor has been predicting this “Legal Storm” for more than a year.

A federal court is backing General Motors Corp. in its attempts to recover up to $253 million from the federal government for one of its underfunded pension plans.The Wall Street Journal reported Wednesday that Judge Nancy Firestone of the U.S. Court of Federal Claims made a first-of-its-kind decision in saying that the federal government should pay GM the “allocable amount” of the pension underfunding, even though no specific amount was given.The government owes GM because the company in 1993 sold a division called Allison Gas Turbine, which provided services to the government.

About 11 percent of large companies that offer traditional pension plans either terminated them or froze benefits last year, a new study says.And as workers around the country are watching their retirement funds shrink, CEOs at companies with massive unfunded pension obligations continue to collect huge salaries and retirement benefits. In addition, rule changes are being considered that could force even more companies to ditch their promises to workers."The companies are operating in a world of uncertainty," said Sylvester Schieber, director of U.S.