Re: “Pension boards must get real when it comes to numbers and challenges” (Feb. 3, 2017).
To the Editor:
A lot has happened in the boardroom since our former colleagues’ terms ended: our boards already have taken every action they suggest. Assumed rates of return and inflation assumptions have been lowered, life expectancies have been lengthened, current employees are contributing more and new benefit tiers have reduced future benefit payments.
Of course, as the proverb says, “no good deed goes unpunished.” As the commentators well know, taking each of these more conservative actions immediately increases a plans’ unfunded liability.
Our members and beneficiaries, and the citizens of the City and County of San Diego should have confidence that those now serving on our pension boards have and will continue to take all prudent steps to ensure the continued strength and sustainability of our pension systems.
Mark Hovey and David Wescoe
Mark Hovey is the CEO of the San Diego City Employees’ Retirement System and David Wescoe is the CEO of the San Diego County Employees Retirement Association