A grand jury in San Diego County is recommending that city officials investigate whether to dissolve the $3.7 billion San Diego City Employees' Retirement System, among other options.
As part of a comprehensive review of how the city developed a $7 billion deficit, the grand jury made a series of recommendations to improve the city's solvency. Among them: Consider dissolving the retirement system in favor of another pension system; move to an outsourced operation; or retain the current system.
Separately, the grand jury is recommending that the system consider alternative methods of selecting investment advisers, including competitive bidding or reverse auction processes. It is also recommending city officials conduct a performance audit of the SDCERS' administration of the pension system.
“We will be responding to the report within the 90-day requirement,” said Rebecca Wilson, chief of staff of the San Diego city system, in an e-mail response to inquiries.