10News.com

Sustain San Diego
Holiday Gift Guide Button
Sustain San Diego
10 News Leadership Award
Money

County's Pension Fund Deficit Growing

Fund Not In Danger Of Running Out Of Money

POSTED: 11:55 am PST March 30, 2004
UPDATED: 12:01 pm PST March 30, 2004

San Diego County's pension fund deficit has grown to $1.4 billion because of poor stock market performance, higher retirement benefits given to public employees and other factors, it was reported Tuesday.

A county report shows that the fund as of June 2003 had a liability of $5.8 billion and assets of $4.4 billion, according to The San Diego Union-Tribune. A report in October 2002 showed the fund had a liability of $5.1 billion and assets of $4.2 billion.

Despite the system's growing deficit, county officials told the newspaper that the county's pension fund is in much better shape than the city's and is in no immediate danger of running out of money to pay retirees.

The city's pension fund, which is about half the size of the county's, has a deficit of $1.1 billion and more than $1 billion in unfunded retiree benefits.

The county's pension fund earned $1.37 billion less than anticipated between June 2001 and June 2003, contributing to the deficit increase, county officials told the Union-Tribune.

Other reasons cited in the report for the growing liability include a rise in disability-related retirements, salary increases and longer life expectancy of retired employees, the newspaper reported.

The San Diego County Employees Retirement Association board, which commissioned the report, will discuss the findings at a meeting on Thursday.

The reports says the county would be required to contribute $250 million to its pension fund for the fiscal year beginning July 1, up from $203 million last year, according to the Union-Tribune.

Three county supervisors told the newspaper that the county had already budgeted $265 million for next year's pension fund contribution, $15 million more than the required amount.

In addition, the county plans this summer to issue more than $400 million in bonds to help pay down the deficit, the newspaper reported.

Links We Like

Sponsored Content
Find out what a sputtering economy and an increasingly difficult to crack job market means to you. More

You can pick your friends, but not your family -- or your neighbors. Here's what you need to know about how to deal with yours. More

If you're looking to save on your next new vehicle, a low sticker price is just one aspect. Consider all the costs and make the right decision. More

Explore the internet’s leading source for online universities and get financial help to further your education! More

Credit Report

560? 675? 720? The average US Credit Score is 692. What is your score? See it online for FREE! More

Best Local Rates On...



LocalNational

30 Yr Fixed Mortgage5.03%5.13%

48 Mo New Car Loan6.87%7.05%

$30k Home Eq Loan8.33%8.35%

6 Month CD1.05%1.13%
Help! I don't understand!
More Rates


Sponsored Links

Stock Quotes

Get a Quote
Enter Symbol

Gas Prices

Gas prices
Keep tabs on the latest news, and calculate the cost of a trip in our special section. More


E-Mail News Alerts
Get breaking news and daily headlines.
Browse all e-mail newsletters