San Diego city employees enrolled in a retirement program that guaranteed them 7.75 percent interest on their investments had the rate cut today to 3.54 percent by the city's pension board.
At least 1,774 municipal employees are enrolled in DROP, or the Deferred Retirement Option Program, which allows them to have their monthly pension payments funneled into an investment account for five years while they are still on the city's payroll.
DROP guarantees a return on the money of 7.75 percent, regardless of what is happening on Wall Street.
The San Diego City Employees' Retirement System Board of Administration voted today to lower the guaranteed rate of return to 3.54 percent.
The change will save the city about $3.5 million in fiscal year 2011, according to Councilman Carl DeMaio's office.
DeMaio, who sent a memo to SDCERS last week seeking the lower guaranteed interest rate, applauded the board's decision, saying it was an "important step forward in reforming the city's financially-troubled pension system."
"While more reforms are needed in the pension system, the action taken today will save taxpayers millions," he said in a statement.
Testimony will continue in trial of a lawsuit alleging that Adam Shacknai, the brother of millionaire Jonah Shacknai, killed Jonah Shacknai's girlfriend, Rebecca Zahau, at the Spreckels Coronado mansion in July 2011.
A San Diego County sheriff's deputy was free on bail Thursday following his arrest by Riverside County authorities on suspicion of lewd acts with a child.
The National Weather Service is predicting rain around San Diego County this week, potentially heavy rain on Thursday. People in unincorporated areas can get free sandbags at numerous locations to help them protect their homes, properties and communities.
Rain showers are expected to reach San Diego County Thursday, but the brunt of a big storm impacting much of Southern California will miss San Diego County and instead hit north of here.
Two more schools face threats Thursday morning in Vista and city leaders are taking new action to stop them.
The debate over dockless bikes rolled into Pacific Beach as the Town Council held a panel Wednesday night with bike and scooter sharing companies: Bird, LimeBike, ofo and Mobike.
Tieray Jones walked out of jail a free man Wednesday night just hours after a judge decided to not re-try him in the death of his stepson nearly 16-years ago.
DMV officers were out Wednesday, looking for people abusing the system. One woman was in tears as she was caught using a handicap placard issued to her adult son - who wasn't with her on the shopping trip.
A Serra High School freshman was arrested Wednesday on suspicion of scrawling a threat about a school shooting in a restroom at the Tierrasanta campus.