San Diego City Employees Retirement System officials expect to receive a $275 million prepayment of employer contributions from the city, the San Diego Unified Port Authority and the San Diego Airport Authority.
The city will give $100 million; the money is coming from a loan securitized by $10.1 million in proceeds from this year's share of a tobacco industry settlement. Loan proceeds are expected to be paid to the $4.1 billion system in July, with the remainder being contributed by all three city employers.
The system will invest use the money to trim its unfunded liability. Under the current actuarial report released May 16, the plan has a $1.39 billion liability as of June 30, 2005, up slightly from $1.37 billion as of June 20, 2004.