San Diego City Employee's Retirement System plans to launch an asset-liability study this summer that is expected to include pension obligation and other plan changes, following the overturn of a successful ballot initiative, said Liza Crisafi, CIO of the $9.9 billion pension fund, in an email.
The 2012 voter-approved initiative, Proposition B, had closed the city's defined benefit plan to all new hires except for sworn city police officers. In January, San Diego Superior Court Judge Richard Strauss declared the proposition invalid and gave Proposition B proponents until April 9 to appeal, which they did not do.
With the litigation now ended, SDCERS' general investment consultant, Aon, will be begin working with the pension system's actuary, Cheiron, to get updated data, Ms. Crisafi said.
Aon executives plan to work with Cheiron to assess SDCERS' expected cash flows and liabilities, which Aon plans to use to form its liquidity and asset allocation recommendations, Steve Voss, senior partner and head of Aon Investments for North America, told SDCERS' board at its May 14 meeting.
SDCERS officials expect to conclude the asset-liability study in January.