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Realistic Funded Level of City Pension Plan Now 56.8%

Earlier this month, the City's chief operating officer, Jay Goldstone, sent a memo to the mayor and council members outlining the purported status of the San Diego City Employees' Retirement System (SDCERS). The note said that the actuarial liability as of June 30, 2009, was $5.964 billion. The actuarial value of assets was $4.07 billion. That made the funded ratio, by conventional figuring, 68.2%. That is worrisome enough. But realistically, that funded ratio should be lower. The market value of assets on June 30 was $3.388 billion. If you divide the actuarial liability into that figure, the funded ratio is 56.81%. Many say the market value of assets is the better figure to use. It's the ultimate test. It shows how much money is at hand compared to how much is owed. All pension funds face the problem of receding assets. San Diego's also has rising liabilities because of the generous -- and some say illegal -- benefits that are in place. Also, some say that the actual liability is higher than the actuarial liability. That would mean the funded level is realistically below 50%.

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Two poems by Marvin Bell

“To Dorothy” and “The Self and the Mulberry”

Earlier this month, the City's chief operating officer, Jay Goldstone, sent a memo to the mayor and council members outlining the purported status of the San Diego City Employees' Retirement System (SDCERS). The note said that the actuarial liability as of June 30, 2009, was $5.964 billion. The actuarial value of assets was $4.07 billion. That made the funded ratio, by conventional figuring, 68.2%. That is worrisome enough. But realistically, that funded ratio should be lower. The market value of assets on June 30 was $3.388 billion. If you divide the actuarial liability into that figure, the funded ratio is 56.81%. Many say the market value of assets is the better figure to use. It's the ultimate test. It shows how much money is at hand compared to how much is owed. All pension funds face the problem of receding assets. San Diego's also has rising liabilities because of the generous -- and some say illegal -- benefits that are in place. Also, some say that the actual liability is higher than the actuarial liability. That would mean the funded level is realistically below 50%.

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Debt Stench

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City's pension liability zooms up by $937 million

"They have...basically put the city in bankruptcy."
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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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