Here's something you might be interested in.
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%.
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%.