San Diego City Pension Weathers Stormy 3 Years
Monday, November 7, 2011
Aired 11/7/11 on KPBS News.
It’s been a bumpy few years for San Diego’s pension fund. Today the city council will hear how the fund’s been performing since 2007.
SAN DIEGO It’s been a bumpy few years for San Diego’s pension fund. Today the City Council will hear how the fund has been performing since 2007.
The council will examine the fund’s performance between July 2007 and June 2010. The bottom line: How did the projections for that period match up with how it actually did?
Mark Hovey, CEO of San Diego’s retirement system, said average investment return was less than the 7.75 percent annual projection. Combined with several other factors, it means San Diego’s pension contribution could go up next year, he added.
“If you look at the whole experience study, the blend of all of these actuarial assumption changes we made will have the effect of slightly increasing the city’s ARC payment,” he said.
Earlier projections had pegged the upcoming payment at about $255 million. But Hovey said this past year saw investment returns of more than 24 percent, which could lower the payment.
The retirement system will know the final amount of the payment in January.