The San Diego pension system is facing criticism for paying out a controversial retirement bonus despite the system's debt of over $3.5 billion.
San Diego’s pension system is again paying out a controversial retirement bonus that has cost the system about $160 million since the bonuses were created in the 1980s. Checks averaging just over $700 were sent last month to nearly 8,700 retirees who have enough years of service to qualify. The checks — some as large as $1,594 — come in addition to the retirees’ usual pension checks. The total paid out this year in bonuses was $7.3 million, which ties last year’s record.
That includes bonuses awarded to participants in the city’s deferred retirement option plan, where employees formally retire but keep working for up to five more years. For those workers, the bonuses were not paid out last month but were instead deposited in their retirement accounts, to be collected once they stop working. Critics say the city’s pension system, which is facing more than $3.5 billion in debt, should invest the bonus money to help reduce that debt instead of doling it out to eligible retirees. The amount each retiree can receive was capped in 2004 after a city pension scandal earned San Diego the nickname Enron-by-the-Sea. At that time, the pension system also disqualified workers who started after 2005. Workers who started before that couldn’t be disqualified because the bonuses are a vested benefit.That’s because the annual payout is based on a formula that compares the pension system’s investment earnings each year to the costs to operate the pension system. The pension system had $592.3 million in realized investment earnings during the fiscal year that ended June 30, which was enough to trigger the bonus payments. Bonuses have been awarded in every year since 1984 except for 2003, 2009 and 2012. They were initially conceived as an antidote to rampant inflation in the late 1970s, which was eating into the value of retiree benefit
PENSION BONUSES RETIREMENT SAN DIEGO CITY FINANCE
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
San Diego’s Weather Forecast for Saturday, December 7, 2024: Warm San Diego SaturdayMoses Small joined ABC 10News as a Multimedia Journalist in 2022. He was born in Birmingham, Ala. and raised in Portland, Maine. He's elated to spend time here and learn more about the community.
Read more »
McGhie's 27 help UC San Diego knock off San Diego 77-71Led by Tyler McGhie's 27 points, the UCSD Tritons defeated the San Diego Toreros 77-71. The Tritons improved to 11-2 with the win and the Toreros fell to 3-9. Joey Chammaa led San Diego with 14 points and Santiago Trouet grabbed 20 rebounds to go with nine points.
Read more »
San Diego News Roundup: Police Pension Dispute, Direct Flights to D.C.This roundup highlights key stories from San Diego, including an ongoing pension dispute for police recruits, the launch of a new nonstop flight to Washington D.C., and environmental concerns over relaxed gas rules for new buildings.
Read more »
San Diego Poet Laureate wraps up term by dreaming and planting seeds in new festivalJason Magabo Perez, appointed San Diego Poet Laureate in 2023, is closing his term — and his San Diego Poetry Futures 2024 initiative — with a poetry festival at UC San Diego this weekend.
Read more »
San Clemente orthodontist charged with molesting 4-year-old boy, child pornFrank Joseph Mogavero, Jr. has offices in San Clemente, San Diego and Mammoth.
Read more »
San Antonio Secures $268 Million for Rapid Bus Transit SystemSan Antonio has received a $268 million federal grant to fund the Green Line, a rapid bus route connecting the South Side to the airport. The 10.4-mile route will feature buses running every 10 minutes with dedicated lanes and signal priority, aiming to reduce traffic congestion and provide a faster, more reliable transit option.
Read more »