California's state pension system was aware four years ago that officials in the small city of Bell were reaping huge salaries but took no action.
The California Public Employees' Retirement System released documents Thursday showing that staffers knew in 2006 that Bell City Manager Robert Rizzo received a 47-percent pay hike in one year.
CalPERS is supposed to stop increases that lead to excessively large pensions but did nothing.
State Attorney General Jerry Brown says he's shocked that his office wasn't notified.
State Treasurer Bill Lockyer says he'll propose rules requiring CalPERS staff to report big pay hikes to the agency's board.
Bell's city manager, assistant city manager and police chief recently resigned after public outcry over their pay. CalPERS has frozen their pension benefits while Brown's office investigates.
Information from: Los Angeles Times
Copyright 2010 The Associated Press.