That compares with 0.9 percent in the previous fiscal year, a performance that hurt the San Diego city budget.
The return on investments by the $5.8 billion San Diego City Employees Retirement System is one factor in determining how much the city has to contribute to its workers’ pensions the following year.
A bad performance means the city will have to chip in more money. The city’s contribution climbed more than $40 million in the current fiscal year, about $8 million or so because of last year’s poor investment performance.
On the other hand, the recent gains by the fund’s portfolio mean the city’s share could be less next year, coupled with expected savings from a five- year labor deal.
SDCERS announced that its annualized returns over three years were 12.2 percent, and 8 percent over 10 years. The system shoots for a 7 percent annual return.