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.
This Sunday is the 8th annual San Diego Green Homes Tour. In Wednesday's Zevely Zone, Jeff's visits Lakeside to preview ten sustainable structures - and one that will really float your boat.
This year's GI Film Festival San Diego will be held Oct. 18 through Oct. 22 at various venues around the county.
A section of the La Jolla Shores boardwalk where famed oceanographer Walter Munk performed experiments as far back as the 1940s will be named in his honor Wednesday.
The GI Film Festival opens Wednesday in San Diego with the opening night screening of "The Two Sides Project." The film tells the story of gold star children who traveled to Vietnam to learn more about the death of their fathers. News 8 photojournalist James Mann spoke with one of the subjects about how the trip gave her closure.
The medical examiner's office on Wednesday said it had identified the remains found in a 55-gallon drum in the San Diego Bay last week and ruled the manner of death a homicide.
A newly concluded nationwide crackdown on child sex trafficking resulted in the rescue of a 16-year-old potential victim of the crime in San Diego, authorities announced Wednesday.
San Diego's region-wide bid for Amazon's second headquarters was sent off Wednesday, one day before the online retailing giant's deadline, according to the San Diego Regional Economic Development Corp.