Pension Plan Funding Level
SAN FRANCISCO EMPLOYEES' RETIREMENT SYSTEMS (SFERS) FUNDING RATIO
How San Francisco is Performing
San Francisco's SFERS pension plan was 87.3% funded as of July 1, 2018, based on the actuarial value of the plan's assets. That ratio is up slightly from July 1, 2017, when the SFERS plan was 86.3% funded.
SFERS’ Unfunded Actuarial Liability (UAL) decreased by approximately $51 million. The actuarial value of SFERS assets totaled $23.866 billion as of July 1, 2018, an increase of $1.68 billion (7.6 percent) over the previous year. This increase reflected smoothed investment returns and contributions offset by benefits and expenses paid during the year. Total pension benefit obligations were $27.335 billion, an increase of $1.63 billion (6.3 percent) over the previous year, including a $200 million increase as a result of the 2018 Supplemental COLA.
This change also includes a $300 million increase in obligations from when the Board of Supervisors approved reducing the discount rate from 7.5% to 7.4% in November 2018. The discount rate refers to the level at which future pension obligations are discounted to their present value. A higher discount rate reduces the reported benefit obligation, while a lower discount rate raises the obligation. This change in the discount rate increased employer contributions by 1.0%.
How Performance is Measured
- Learn more about the San Francisco Employees' Retirement System (SFERS).
- Download the annual actuarial valuations for SFERS.