The Morning Report
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The city of San Diego’s annual pension payment will be nearly $20 million higher than city officials had forecasted and the system is in its worst shape since the nadir of the city’s pension scandal six years ago, according to a report released by the retirement system’s actuary Friday.
The city’s payment this year will be $231.7 million, an increase from September projections. City officials had believed the payment would decrease due to the city’s reform efforts and factored in a savings when closing a $179 million gap in the city’s day-to-day operating budget last month.
The new information immediately rips an eight-figure hole in the city’s budget.
In just as bad news for the city, the pension system is now 66.5 percent funded, the lowest percentage since 2004.
The actuary’s report blamed stock market losses for the bulk of the problems. The system lost 19.2 percent of its value or $863.2 million in the market last year. (The city’s portion of the losses was $811.4 million).
For perspective, last year’s pension payment was $154.2 million and the system was 78.1 percent funded.
The city’s retirement board will hear the report Jan. 22.
Mayor Jerry Sanders’ staff couldn’t immediately be reached for comment.
— LIAM DILLON