San Diego pension fund in trouble


And San Diego did it to themselves
Sometimes I wonder if anyone paid attention in math or history class. Emphasis added.

San Diego will make a required $162 million payment to its troubled city employees' pension fund and will look for ways to provide it with additional funding, Mayor Jerry Sanders said on Friday.

His vow came immediately after the pension fund released preliminary estimates for how much San Diego must pay into the retirement system, which handles benefits for 19,000 members.

"We see this number as a floor," Sanders told reporters at a press conference. "We now know what the bottom is and we can work our way up from there."

San Diego's pension fund crisis, discovered in February 2004, has shaken the city's government.

San Diego and its pension fund face a deficit estimated to be as high as $2 billion, caused by agreements in 1996 and 2002 to increase benefits while allowing the city to pay less into the fund than the retirement system needed.

Hmmmm. Less funding but more spending, and then be surprised when the system almost collapses.

I can't blame the San Diego city government though. That particular stunt was perfected years ago by the United States Congress.

— NeoWayland

Posted: Mon - March 20, 2006 at 04:31 AM  Tag


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