Reform 4.3: SDCERS Rates
Continue Savings Achieved from Revised SDCERS Rates for “Substantially Equal” Contributions. Other Information:
As our office and the City Attorney’s office have raised the issue of challenging how the city achieves compliance with the
Charter requirement of charging city employees a “substantially equal” share of the cost of a normal pension allowance, SDCERS
has already taken some action that have resulted in benefits to city taxpayers. In fact, the City’s actuarial valuation results
of June 30, 2009 were adjusted to reflect the Board’s decision to adopt new employee contribution rates at its May 28, 2010
meeting. This resulted in a $2.6 million reduction in the FY 2011 ARC.7 . Some on the City Council raised the possibility
of “giving back” these gains; we do not support giving back these taxpayer savings. We expect additional savings in the FY
2012 budget from these modifications to contribution rates made by SDCERS, but are intentionally not scoring those savings
pending further analysis of SDCERS methodology and its impact on FY 2012. The Budget and Finance Committee should request
this analysis as soon as possible so savings can be booked into the FY 2012 budget solution.
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