San Diego City's Pension Fund Drop Disclosed
The City of San Diegos pension fund is falling, along with every other pension fund in the nation. City attorney Mike Aguirre wants to make sure the growing deficit does not escape anyones notic
The City of San Diego’s pension fund is falling, along with every other pension fund in the nation. City attorney Mike Aguirre wants to make sure the growing deficit does not escape anyone’s notice. KPBS reporter Alison St John has more.
The city of San Diego got into trouble five years ago for not revealing its pension deficit to investors. It was barred from selling bonds on Wall Street.
Now, just as city officials are preparing to reenter the bond market, the pension fund’s bottom line plummets again. The city has a bond disclosure attorney ,who says this time the city is revealing monthly pension figures. According to information released by pension system offitials, the fund has fallen from just over $5 billion to under $3 billion so far this year.
City attorney Mike Aguirre wants the mayor to reveal how this will affect the budget.
Aguirre : Tell us what the numbers are, what has the pension plan lost , what is the taxpayer on the hook for.. and will you address the issue of whether there should be a change in city policy to address the financial meltdown that we see is going on.
Los Angeles pension fund officials say their $40 billion system may cost an extra $500 million a year to prop up.
San Diego pension officials say the city does not need to calculate its increased contribution until next June’s financial report is done
Alison St John, KPBS news.