Pension Plan Funding Level
Goal: 100% funded
Goal Status: NEEDS IMPROVEMENT
PENSION FUNDING LEVELS INCREASED IN RECENT YEARS, BUT DECLINED IN FY 2015-16 WITH GROWING COSTS AND LIABILITIES
How San Francisco is Performing
As of July 1, 2016, the most recently conducted valuation, the City’s SFERS pension plan was 82.6 percent funded, down from 88.9 percent as of July 1, 2015.
The market value of SFERS assets totaled $20.16 billion, a one percent decrease from the July 1, 2015 value of $20.43 billion. Total pension benefit obligations were $24.4 billion, more than 6 percent above the previous value of $23.0 billion.
The Unfunded Actuarial Liability (based on the Market Value) increased approximately $1.71 billion, up 67 percent over the July 1, 2015 value. This increase in unfunded liabilities is partly due to the adoption of retroactive Supplemental Cost of Living Adjustment (COLA) benefits that apply to 2013 and 2014 for some retirees, which increases mandatory pension contributions by the City.