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Market Downturn has Implications for San Diego Pension Fund

The financial crisis threatens the retirement savings of every San Diegan invested in Wall Street. But a market downturn would be a double whammy for San Diego taxpayers, who are on the hook to make

Market Downturn has Implications for San Diego Pension Fund

The financial crisis threatens the retirement savings of every San Diegan invested in Wall Street.  But a market downturn would be a double whammy for San Diego taxpayers, who are on the hook to make good on guaranteed public employee pension funds. KPBS reporter Alison St John has more.


San Diego city taxpayers already know that a share of the city's budget has to go into the employees' pension fund.  

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But that share would have to grow if the market takes a hit.  

David Wescoe, the city's pension fund administrator, says city employee pensions,  like most public employee pensions, shouldn't be affected by a market downturn because they are guaranteed.

Wescoe : The crisis more directly impacts the plan employers, the plan sponsors because ultimately it's the employer who has to make good on the benefits, the city of San Diego.

That means the city's budget would have to pick up the tab.

The city's contribution is about $160 million  this year.
Wescoe says he won't know whether the city's contribution will have to go up next year until the annual auditor's report next June.

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He says the pension board has already lowered its expectations of investment returns from 8% to 7.75%

Alison St John, KPBS news.