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IMPORTANT: These changes only apply to (1) all City of San Diego members and (2) Port Safety members who were hired on or after January 1, 2013.
Member contributions are the mandatory pre-tax deductions on a member’s biweekly paycheck that are deposited into the SDCERS Trust Fund, where they earn interest and ultimately fund each member’s individual pension benefit. Contributions are calculated as a percentage of the member’s pensionable salary on each paycheck. The percentage is determined according to the member’s plan tier and age of entry into SDCERS. Contribution rates are adjusted by SDCERS’ Board, as recommended by SDCERS’ actuary, based on requirements in the City of San Diego Charter and the Public Employees’ Pension Reform Act of 2013.
At its May 2024 meeting, SDCERS’ Board of Administration approved new member contribution rates, which will go into effect on July 1, 2024 for all Port Safety Members hired on or after January 1, 2013, and all City of San Diego members. You can view your current contribution rate chart by going to “Retirement Plan Summaries” and clicking on your employer and date range corresponding to your initial hire date. You can also see how your contribution rate changed by reviewingthe chart corresponding to your plan tier and locating your entry age. (Note: If you log in to your Member Portal account and go to “SDCERS Account Information,” you can find your entry age there.) Most members will experience slightly increased contribution rates – this is due to changes in certain actuarial assumptions. The aggregate average across the board increase was approximately 1 percentage point.
According to the most recent annual valuation, the most significant change to the economic assumptions was an increase in the annual cost of living adjustment (“COLA”), from 1.90% to 2.00%. In addition, the price inflation and wage inflation assumptions were updated. Previously, the price inflation assumption and the wage inflation assumption were both 3.05%. Under the revised assumptions, the price inflation assumption is 3.00% and the wage inflation assumption is 3.25%, which is price inflation plus productivity. There were other minor adjustments to the demographic assumptions, including a change to the assumed mortality improvement scale to better anticipate future improvements in life expectancy. Overall, the new assumptions increase the expected cost to the system; therefore, members and their plan sponsors must contribute more while they are working in order to keep the system properly funded, given the added cost due to these new assumptions.
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IMPORTANT: These changes only apply to (1) City of San Diego members and (2) Port and Airport members who were hired on or after January 1, 2013.
Member contributions are the mandatory pre-tax deductions on a member’s biweekly paycheck that are deposited into the SDCERS Trust Fund, where they earn interest and ultimately fund each member’s individual pension benefit. Contributions are calculated as a percentage of the member’s pensionable salary on each paycheck. The percentage is determined according to the member’s plan tier and age of entry into SDCERS. Contribution rates are adjusted by SDCERS’ Board, as recommended by SDCERS’ actuary, based on requirements in the City of San Diego Charter and the Public Employees’ Pension Reform Act of 2013.
At its March 12, 2021 meeting, SDCERS’ Board of Administration approved new member contribution rates, which will go into effect on July 1, 2021 for all City of San Diego members and all Port and Airport members hired on or after January 1, 2013. If you fall into one of these membership categories, you can view your new contribution rates by going to “Retirement Plan Summaries” and clicking on your employer and date range corresponding to your initial hire date. Most members will experience slightly increased contribution rates – this is due to changes in certain actuarial assumptions.
According to the most recent annual valuation, mortality assumptions are changing such that people are generally living to an older age. On top of that, future improvements to those mortality assumptions (generational mortality improvements) were considered. For example, a 65-year-old today will have a different mortality estimate than that of a 65-year-old 20 years from now. Both of these new assumptions increase the cost to the system, since the new assumptions indicate that SDCERS will be paying out individual pension benefits over a longer timeframe than original estimates suggested. Therefore, members and their plan sponsors must contribute more while they are working in order to keep the system properly funded, given the added cost due to these new assumptions.
The new contribution rates will be reflected in City of San Diego members’ paychecks for pay period ending July 9, 2021, and Port and Airport members’ paychecks for pay period ending July 1, 2021.
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IMPORTANT: These changes only apply to (1) City of San Diego Members and (2) Port Safety Members who were hired after January 1, 2013.
New Member contribution rates went into effect on July 1, 2019 for all City of San Diego Members, and for Port Safety Members hired after January 1, 2013.
If you fall into one of these categories, you can view your new contribution rates by going to “Retirement Plan Summaries” and clicking on your employer and date of hire. Most Members will only notice a minor adjustment on their first July paycheck. These Member contributions are the mandatory pre-tax deductions on a Member’s biweekly paycheck that are deposited into the SDCERS Trust Fund, where they earn interest and eventually fund each Member’s individual pension. Contributions are calculated as a percentage of the Member’s pensionable salary. The percentage is determined according to the Member’s plan tier and age of entry into SDCERS. Contribution rates are adjusted by SDCERS’ Board as needed, based on actuarial assumptions and calculations provided by SDCERS’ actuary.
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Important: These rate changes only apply to active City of San Diego employees, and Airport Authority and Unified Port District employees hired after 2013.
New contribution rates went into effect July 1, 2018 for City of San Diego members and Airport Authority and Unified Port District employees hired after 2013. Most members will note only a minor adjustment on their July paycheck.
These member contributions are the required pre-tax contributions to the SDCERS trust fund that are deducted from the members' bi-weekly paychecks. Contribution rates are determined by a member's plan tier and age of entry into SDCERS.
Contribution rates are based on actuarial assumptions and calculations provided by SDCERS' actuary, Cheiron.
To view the contribution rates from Cheiron's Actuarial Valuation for City of San Diego members, click here.
For Airport Authority members, click here.
For Port District members, click here. Learn More...
Important: These rate changes only apply to City of San Diego members of SDCERS; Unified Port District and Airport Authority members are not affected.
New contribution rates went into effect July 1, 2017 for City of San Diego members only. Most members will note only a minor adjustment on their July 28 paycheck.
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At its September 9th meeting, the SDCERS Board of Administration discussed an experience study from the system’s actuary that covered revised economic and demographic assumptions, associated cost implications, and funding alternatives. The Board voted to accept the findings of the experience study and the actuarial assumption recommendations of the actuary. A second and separate Board vote to modify the system’s current funding methodology and to smooth the volatility of future pension contributions did not pass; the vote was 6-4 and a majority of 7 votes was required for the proposal to pass.
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Contribution rates went into effect July 1, 2016 for City of San Diego members only. Most members will note only a minor adjustment. As PEPRA members, the San Diego Unified Port District and San Diego County Regional Airport Authority are not affected. Learn More...
Beginning July 2014, active SDCERS members from the City of San Diego will experience a decrease in their biweekly contribution rates due to adjustments made to the System’s discount rate, inflationary pay assumptions and multi-year pay freeze agreements made between the City and its labor unions. On average, as a percentage of pay, rates will be reduced by 0.65 percent for General members and reduced by 0.84 percent for Safety members. Learn More...
Active SDCERS Members working for the City of San Diego will see a change in their Member contribution rates beginning in July 2012. These Member contributions are the required pre-tax contributions to the SDCERS trust fund that are deducted from Members’ bi-weekly paychecks. Contribution rates are determined by a Member’s plan (General or Safety plans) and age of entry into SDCERS.
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City of San Diego employees (excluding those in DROP) may notice a change in their August 20, 2010 paycheck. This change is due primarily to the delayed implementation by the City of San Diego of SDCERS' new contribution rates. The paycheck that employees receive on August 20, 2010 will have a single SDCERS contribution amount which will include the contribution for the August 20, 2010 paycheck and the catch-up correction for the paycheck that employees already received on August 6, 2010. If you have any questions about this, please contact your payroll specialist. Learn More...