Times of San Diego: Kudos to S.D. Pension Gurus: 17.3% Return

Date: Sep 10, 2014


Times of San Diego: Kudos to S.D. Pension Gurus: 17.3% Return in Fiscal Year

The San Diego City Employees Retirement System reported Tuesday that its net investment return for the fiscal year that ended June 30 was 17.3 percent, higher than initially believed.

SDCERS, which handles retirement plans for the city of San Diego, Port of San Diego and San Diego County Regional Airport Authority, last month issued a preliminary report that put the net gain at 16.6 percent. The net gain is the investment return minus fees.

The update came after further study by the agency’s investment consultant.

For pension systems, a stronger investment performance lessens the financial contributions that member agencies will need to make in the next fiscal year, leaving more money available for public services.

“The updated investment report demonstrates the financial strength of SDCERS and its long-term record of excellent investment results,” said City Council President Todd Gloria, who also chairs the council’s Budget Committee.

“These results translate into a secure retirement future for current city employees and city retirees,” he said.

SDCERS investment officers credited strong performances by U.S. and international stocks. The returns do not include final results for private equity and real estate, so the final tally won’t be released until the fall.

The pension system assumes a return of 7.25 percent. As of June 30, the estimated three-year return was 10.1 percent. Over five years, the growth was 13.5 percent, and 7.7 percent for 10 years.

Assets under management by SDCERS grew by $900 million during the last fiscal year.

On July 1, the pension system announced that managed assets surpassed the $7 billion mark for the first time in system history.

SDCERS provides retirement, disability retirement, death and survivor benefits to more than 20,000 members.

To read the article online, click here.

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