San Diego City Council on July 19 is scheduled to decide whether to issue $200 million in pension obligation bonds to partly finance the San Diego City Employees' Retirement System's $1.167 billion unfunded liability. Proceeds from the bond issue would increase the $3.1 billion pension plan's funded ratio to 70%; the system was 67.2% funded in June 2003.
Separately, the city's rules committee is considering reducing the city employees' pension board to 11 members from the current 13. The proposal would also require that six members not be participants. The same six also would have to have minimum professional qualifications related to pension plan administration. Another proposal by a city pension reform committee would reduce the committee to seven independent members, with minimum professional qualification.