Faulconer: Pension Losses Underscore Need for Reform
Faulconer Statement on Pension Fund Investment Losses
Underscores importance of fully implementing voter approved pension reform measure that will save taxpayers nearly $1 billion
SAN DIEGO — Councilmember Kevin L. Faulconer released the following statement today regarding the San Diego City Employees Retirement System (SDCERS) actuarial valuation for fiscal year 2012.
“San Diego voters overwhelmingly approved Proposition B to end the broken pension system and usher in an affordable and fair government employee retirement plan,” said Councilmember Kevin Faulconer, co-author of the proposition. “The facts are clear. Comprehensive pension reform will save taxpayers nearly $1 billion.”
A 2012 report by the Independent Budget Analyst projected moving most new City employees to a 401(k)-style retirement system and capping existing employee’s base pay for five years will produce $950 million in savings over the next three decades. Proposition B was approved in June 2012 with over 60 percent of the vote.
The SDCERS report states the City’s pension payment increased in part due to $8.3 million in pension fund investment losses. Once Proposition B is fully implemented, San Diego taxpayers will no longer be responsible for such massive and unexpected pension payments.
“By approving Prop B, San Diegans told City Hall they want the pension debt to be paid down faster. We must implement the will of the voters and continue fiscal discipline to ensure savings can be reinvested in San Diego neighborhoods.”
For Immediate Release: January 11, 2013
Contact: Matt Awbrey, Communications Director – (619) 929-0089
Matt Awbrey is Communications Director for Council President Pro Tem Kevin Faulconer.