The city of San Diego will have to pay $225 million to its pension fund next year. That’s the largest single pension payment the city’s ever had to make. The pension board decided on Friday not to reduce the size of the payment.
The proposed changes in the way the pension fund is managed would have saved San Diego about $30 million off of next years payment. But the board that manages the fund opted for a more conservative approach and rejected the changes. The city’s Chief Operating Officer Jay Goldstone says the board’s action means the city’s payment will be $225 million next year. He says there won’t be any savings for the city.
“This now adds another $30 million which most likely could mean anywhere from 300 to 400 positions that would have to be eliminated,” he said.
Goldstone said the city will also be forced to look into public safety and service cuts to cover the cost. San Diego could have a $100 million deficit next year. Several city council members were opposed to the proposed pension fund changes. They say San Diego should deal with the larger payment now rather than putting it off.
