Board adopts FY 26‑27 retirement contribution rates as staff report improved fund metrics

The San Diego County Board of Supervisors unanimously approved the county's retirement contribution rates for fiscal year 2026‑27 after a staff presentation describing improved funded status and actuarial context.

County financial staff, including Nicole Temple from the Office of Financial Planning, reviewed SDCERA's 2025 actuarial valuation. Temple reported an unrecognized investment gain of $769,000,000 for 2025 and said the total required contribution from all participating employers is estimated at $757,000,000 with the county share at just over $711,000,000 — a year‑over‑year decrease of approximately $131,000,000 that staff said had been anticipated and integrated into long‑range planning.

Staff explained the decrease largely reflects the final payoff of the initial amortization established in 2004, when SDCERA adopted a 20‑year amortization policy intended to spread unfunded liabilities and reduce year‑to‑year volatility. The presenter said the policy and recent investment performance will be recognized over time and that retirement contribution projections are integrated into the county's five‑year financial forecast and labor negotiations.

Public commenters questioned transparency, actuarial assumptions and the use of taxpayer dollars for pension funding. Speakers urged continued oversight of pension investments and clarity on how contributions are allocated.

The board moved and seconded staff's recommendation; the clerk reported the motion passed unanimously with all supervisors present voting aye. County staff will include the adopted rates in the CAO's operational plan and continue to update the board on fund performance and fiscal impacts.

The action is an annual administrative step to adopt SDCERA‑approved contribution rates and does not itself change SDCERA policy.