I am sure Nutter, Butkovitz and Council choosign to not pay into it for two years is not helping.
City pension-fund shortfall comes to $5B ... & counting | Philadelphia Daily News | 03/01/2010
Then-Mayor Ed Rendell proposed to pay off the city's liabilities with escalating payments over the next 30 years. Rendell stuck with the plan for six years. But then he rolled the dice in 1999, borrowing nearly $1.3 billion in a 30-year bond deal, figuring that the pension system would invest the money and earn a bigger return than the 6.87 interest rate on the city bonds.
The plan crapped out, as the city's investments soured.
Cheiron Inc., the pension fund's actuarial consultants, reported last week that the pension fund's average gain over the last 10 years has been only 3.0 percent, not even enough to pay the interest on Rendell's bond deal. And the city still owes $1 billion in principal on Rendell's bonds, on top of the $5 billion deficiency in the pension fund itself.
In 2003, the Street administration reduced its pension payments below the levels in Rendell's 30-year plan, and the unfunded liability climbed sharply.