SDCTA Statement on SDCERS Board Meeting

Haney Hong, President and CEO of the San Diego County Taxpayers Association, released the following statement today:

“This morning’s SDCERS board meeting had important consequences for generations of local
taxpayers.

The Board of Administration voted to lower the discount rate for the 2017 valuation to 6.75%, and then down to 6.5% the following year. They also decided to keep wage and cost of living assumptions stable, which helps keep payment costs manageable for now. Even though these efforts won’t remedy the ongoing pension crisis, both of these decisions represent steps in the right direction for a city facing an ever-growing pension liability.

With the hope of stabilizing employer contributions over the next 15 years, the Board also
adopted a new layering scheme to reschedule certain portions of upcoming payments. Changes
like this complicate the process and make it harder for the average taxpayer to understand how
their pensions are being financed.

Even with some good outcomes from today’s SDCERS meeting, years of continued quality
fiduciary management is the only thing that will enable the City to remain financially solvent
while also fulfilling its promises to public employees.“

Download the statement here.