The City of San Jose has released its actuarial update for its pension funds. The updated numbers for the two funds, which provide benefits for the City’s sworn and civilian employees, reflect changes in assumption rates, investment returns, and provide a glimpse of the savings realized by recent reforms enacted in the City.
Among the more significant developments outlined in the 10-page memo is the drop in the unfunded rate of the City’s healthcare funds for retirees. The City and its employees have embarked upon a five-year plan to fully fund the ARC for the healthcare fund. This plan resulted in a $262 million drop in its healthcare unfunded rate, a drop of 18.75 percent.
Other pension liabilities increased however, with the most significant increases coming from the Police and Fire Pension fund. The boards of those funds voted to reduce their assumption rates, resulting in a $280 million increase in the unfunded liability.
The total unfunded liability for all funds, including healthcare, is $2.9 billion.