San Diego increases pension debt..punts the bill several years down the road

Capture.PNGSan Diego increased its pension debt on Friday by adopting the most conservative investment return projections in the state, but pushed much of the financial impact several years down the road.

Lowering the pension system’s projected investment returns from 7 percent to 6.5 percent, which will require higher contributions by taxpayers and city workers, was widely praised as a prudent move in light of the volatile global economy.

But critics called the decision to spread the impact over several years irresponsible, comparing the move to previous underfunding schemes more than a decade ago that earned San Diego the nickname “Enron by the Sea.”

Source: San Diego putting off pain from new pension debt – The San Diego Union-Tribune

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s