City Rejects Ex-Manager’s Claim

The Manhattan Beach City Council Tuesday night rejected a claim filed by former City Manager David J. Thompson in an ongoing dispute over the retiree’s pension benefits.

Thompson’s $139,000 annual pension, which was $50,000 more than his final year’s salary, was slashed last year, soon after council members discovered the amount of his pension. Although the council had approved the pension, members said they were stunned to learn that Thompson’s final-year compensation had ballooned to $237,875 because he was given credit for unused sick leave and vacation accumulated over 16 years.

Based on that final year salary, his pension exceeded his $88,000 annual salary by more than $50,000.

Last month, Thompson, 62, who retired in 1990, filed a claim with the city accusing it of breach of contract, libel and slander, invasion of privacy, misrepresentation, infliction of emotional distress, deceit and fraud.

Risk Manager Howard Fishman said in a memo to the council that Thompson’s case had been evaluated by the city’s insurance administrators, and they viewed it as one of questionable or no liability against the city.