Friday, March 17, 2006
The city of San Diego learned today its payment into the troubled pension system in the next fiscal year this year is $162 million. But there is some dispute over whether that will be the actual figure that needs to be paid into the plan. KPBS Reporter Amita Sharma has more.
According to the system's actuary, the overall deficit in the pension plan is still at $1.4 billion. That's why the city's projected annual pension bill this summer is at $162 million, the same as it was last year.
The city's chief financial officer Jay Goldstone said the new figures are good news because San Diego had already budgeted that amount for the next fiscal year.
Goldstone: "I probably have some short-term relief. But beginning in fiscal year 08, we're probably going to have to go down to a 15 year amortization which will result in a significant increase in our contribution."
But a deputy city attorney said the actuary's figure on the annual payment was misleading because it didn't include interest on the deficit which could reach $60 million. Amita Sharma, KPBS News.