The City’s Annual. Contributions For Fiscal Years 2005 through 2008, and Security for Performance of Charter Obligations Under the provisions of Article IX, Section 143 of the City Charter of the City of San Diego (the “Charter”), the City is obligated to contribute for fiscal years 2006 through 2008 to SDCERS an amount derived from the rates calculated by the actuary for SDCERS in its annual valuation and approved by the SDCERS Board of Administration (the “Contribution Amount”). The City acknowledges its Charter obligation to pay the Contribution Amount for fiscal years 2006 through 2008. Such obligations are expressly limited to future fiscal years 2006 and beyond, and do not in any way create a Charter obligation to pay any amount greater than the City has already contributed (or will contribute pursuant to section 3.a.(1)) to SDCERS for any fiscal year prior to 2006. Payment of the Contribution Amounts described below are in full satisfaction of the City’s Charter obligations for each fiscal year. In addition to the terms set forth below, the City agrees to provide collateral to secure payment of the annual contribution obligation through Fiscal Year 2008. Commencing with the June 30, 2004 Annual Actuarial Valuation, the amortization period for the Unfunded Actuarial Accrued Liability (“UAAL”) will be reset to a new 30-year fixed amortization period. The City’s Contribution Amount for Fiscal Years 2006, 2007 and 2008 only (the “Period”), will be based on the 30-year amortization period reset as of the June 30, 2004 Annual Actuarial Valuation. After Fiscal Year 2008, subject to any amendment to the Charter, the City will remain obligated pursuant to the Charter to contribute to SDCERS an amount derived from the rates calculated by the SDCERS actuary in its annual valuation and approved by the SDCERS Board of Administration, and SDCERS may utilize any amortization schedule it chooses, consistent with Article XVI, section 17, of the California Constitution and may implement any new, different, or modified actuarial assumptions, in consultation with its actuary, for purposes of establishing the City’s annual employer contribution thereafter. The parties acknowledge that amortization schedules selected by SDCERS after Fiscal Year 2008 may be considerably shorter than 30 years, in which event there will be a substantial increase in the City’s contribution amount. In calculating the contribution rates for the Period, the actuary will use the assumptions included in the experie...
