Reform 4.5: Investment Returns

Impact of Improved Investment Returns on Annual Pension Payment.

Other Information:

It is our understanding that the pension plan administered by SDCERS exceeded the assumed rate of return for the year ending June 30, 2010. The precise magnitude of the impact will not be known until the actuarial valuation is complete at the end of calendar year 2010, however. The Five Year Outlook assumes that the FY 2012 pension payment is the result of all actuarial assumptions being achieved. Therefore, any positive net impact due to experience gains will lower the ARC payment in comparison to the projected payment in the Five Year Outlook, in turn lowering the FY 2012 deficit.

Indicator(s):

Indicator:1

Content