San Diego Housing Market News and Analysis
OT: Surprise! City Pension’s Low Returns Hit Budget
User Forum Topic
Submitted by blake on August 11, 2012 - 7:00am
The San Diego City Employees’ Retirement System earned 0.3 percent on its investments last year, initial data released this week said. The system assumes it will return 7.5 percent on its investments each year.
The investment returns are one of three sources the city uses to pay its pension bills. When returns don’t come in, it needs to come up with the money itself.
While the investment figures aren’t final, city Chief Operating Officer Jay Goldstone said the city’s pension payment will increase.
This is bad news for the city budget and all the promises that mayoral candidates are making about new initiatives.
Is it "investment" if the losses are backstopped by other people money?
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