Changes Considered for S.D. Pension Fund
The board that administers San Diego’s pension system is considering ways to lower the city’s pension payment next year.
The city’s required annual contribution for its pension plan was $154 million this year. But San Diego City Employee’s Retirement System Administrator David Wescoe says that amount could jump to $236 million next year. He says the contribution is certain to increase. But he says the pension system could make some changes so it doesn’t go up as much. But Wescoe says this is different from when past city officials intentionally underfunded the pension.
“First of all, the actuary will still calculate a required annual contribution that is consistent with government accounting standards. That was not done in the past. The other thing is, the city will pay that full amount. The city didn’t do that in the past,” he says.
Wescoe says all pension systems are in the same situation because 2009 was such a bad year for investments.