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S.D. Pension Deficit Lower, But May Be Repaid Sooner

San Diego’s pension board has officially confirmed the city’s pension deficit is now $1 billion. That’s less than the $1.4 billion estimate last year. But the pension board may decide the city has

S.D. Pension Deficit Lower, But May Be Repaid Sooner

San Diego’s pension board has officially confirmed the city’s pension deficit is now $1 billion. That’s less than the $1.4 billion estimate last year. But the pension board may decide the city has to repay the debt sooner. KPBS reporter Alison St John has more.

The pension board wants the city to understand it is they and not the city that decides what should be paid into the pension fund. The pension board’s actuary has some good news for the city… according to his calculations, the fund is now nearly 80 percent funded. That’s much healthier than three years ago when estimates suggested it was only just over 60 percent funded.

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Rebecca Wilson of the pension system says the SDCERS board is now considering whether to require the city to pay off the deficit faster.

Wilson: They’re looking at all of the different options - in the end it is the responsibility of SDCERS to make the determination of what’s best for the trust fund.

Currently, the city is working on paying back the deficit in 30 years. Mayor Sanders wants to reduce that to 20 years. But the pension board may decide to reduce that to 15. Alison St John, KPBS news.