The San Francisco Employees’ Retirement System (SFERS) administers the City’s pension plan, a cost-sharing multiple-employer defined benefit that is funded through employee and employer contributions and investment earnings.
The general financial health of retirement systems can be measured in many ways, but the most basic is through comparison of a given plan’s liabilities versus its assets, expressed as a percentage funding level. For pension plans, this measurement is conducted using both a market value of the system’s assets and an actuarial value. Values reported here are using the actuarial value percent funded.
PENSION FUNDING LEVELS DECREASED SIGNIFICANTLY DURING THE RECESSION, BUT HAVE SINCE MOVED BACK TOWARDS THE GOAL OF 100% FUNDED
How San Francisco is Performing
As of July 1, 2015, the most recently conducted valuation, the actuarial value of SFERS assets totaled $20.4 billion, a four percent increase over the July 1, 2014 value of $19.9 billion. Total pension benefit obligations were $22.7 billion, equating to an 89.9 percent funded status. This represents an improvement from 85.3 percent funded the prior year.
How Performance is Measured
SFERS conducts an annual actuarial valuation of its assets and liabilities in order to assess the funded status of the system and to determine appropriate levels of City contributions to the fund for the next fiscal year.