Myers and Hancock re-elected to Board of Retirement
The Registrar of Voters has certified that active Safety members have re-elected incumbents David A. Myers and Tim Hancock to the Board of Retirement. This will be Myers’ fifth term in the seventh seat on the Board, and Hancock will serve a second term in the alternate Safety seat. Their new three-year terms begin January 1, 2014.
Active Safety Member elected candidates certified Friday
The elected candidates for the active Safety member election will be certified by the Registrar of Voters on Friday, November 22.
This election also determines the Safety member appointed to the alternate seat.
Three active Safety members ran in this election: Carl H. Gregory Jr. from the Sheriff's department; Timothy Hancock from the Probation department; and David A. Myers from the Sheriff's department.
The elected candidates will serve a three-year term beginning on January 1, 2014.
SDCERA's 2013 fiscal year outperforms benchmark with 8.3% investment returns
Fund's emphasis on diversification and fiduciary prudence leads to outperformance of fund’s policy benchmark and typical public retirement plans
SAN DIEGO — The San Diego County Employees Retirement Association (SDCERA) reported today that the $9.1 billion pension fund achieved a year-end investment return of 8.3% for the fiscal year that ended June 30, 2013.
SDCERA's long-term investment strategy, which involves identifying assets that maintain low correlations to each other in evolving market conditions, enabled the pension fund to surpass its policy benchmark's return of 7.0% during the 2013 fiscal year.
SDCERA's portfolio generated stronger long-term results with three-year annualized returns of 11.9% as of June 30, 2013. A typical public retirement plan holding 60% of the portfolio in stocks and 40% in bonds (60/40 portfolio) earned a three-year 9.9% annualized return for the same period. A one-year comparison showed the 60/40 portfolio achieved a return of 10.6% for the fiscal year that ended June 30, 2013 primarily driven by short-term U.S. equity market performance.
Supplemental Benefit Allowance amounts reduced in July 2013
The Supplemental Benefit Allowance (SBA) paid to eligible Tier A members was reduced by 50%, effective with the July 2013 benefit payment. The change affects all retired Tier A members who currently receive the SBA, and eligible Tier A members who retire in the future, including those receiving a benefit based on a disability retirement. The maximum monthly SBA amount was reduced from $350 to $175.
The SBA is a nonvested, discretionary benefit paid to eligible retired Tier A members in addition to their monthly retirement benefit. The SBA is funded from a reserve account of excess earnings approved by the Board of Retirement in prior years.
A portion of the reserve account was restricted by a court ruling in 2003 that required the maximum SBA to be maintained to at least $350 until the restricted portion of the account was empty. The final SBA payments were made out of the court-restricted funds in June 2013, so the benefit was reduced for all eligible members in July.
The court ruling does not restrict the remaining funds in the reserve account, but the Board of Retirement agreed to continue using the funds to pay the SBA. The Board voted in 2010 to gradually reduce the amount of the SBA in order to provide payments to eligible members for a longer period of time.
The remaining funds in the reserve account are expected to pay the SBA for another two to three years, depending on the rates of retirement.
Visit the SBA page to view the benefit amounts based on years of SDCERA service credit.
Future retirement benefits affected by administrative changes
The County Board of Supervisors has approved amendments to the Compensation Ordinance and Administrative Code for both non-represented employees and those who are represented by the San Diego County Deputy District Attorneys Association (DDAA), the Association of San Diego County Employees (ASDCE), the San Diego Deputy County Counsels Association (SDDCCA) and the District Attorney Investigators Association (DAIA).
These changes include one-time monetary payments equal to a percentage of base pay and/or a set dollar amount. These payments are included when calculating final average compensation for Tier I, Tier A and Tier B members; they are not considered retirement eligible earnings for Tier C members.
View a list of earnings categories that are retirement eligible by downloading the Earnings Categories charts on the Retirement Eligibility page.
The amendments approved by the Board of Supervisors for the groups listed above include two additional retirement-related changes: eliminating the 30-year award and reducing employer-paid offset.
Effective June 28, 2013, the monetary payment for employees who have attained 30 years of service credit was eliminated. However, the stoppage of member contributions for active members attaining 30 years of service credit will remain in effect for all members except those in Tier C.
Effective December 27, 2013, the County portion of employer-paid offset will decrease. The amount of the offset reduction will vary depending on representation unit.
SDCERA Board selects Wurts & Associates as General Consultant
SAN DIEGO — The San Diego County Employees Retirement Association (SDCERA) Board of Retirement voted to select Wurts & Associates as its General Investment Consultant during its June 6 meeting. In this role, Wurts & Associates will provide a broad range of independent, expert consulting services regarding the SDCERA investment portfolio.
“In-depth analysis and reporting from Wurts & Associates will provide the Board of Retirement a third-party perspective and an ongoing education element to ensure the Board has a full understanding of the strategic direction of the investment portfolio,” said SDCERA CEO Brian White.
Wurts & Associates was chosen for their alignment with the SDCERA fund’s risk-based investing policy, their broad experience working with institutional investors, and their proven effective use of robust tools that analyze risk and provide actionable reports to their clients. The consulting firm’s start date of the new three-year contract with SDCERA has not yet been determined.
The General Investment Consultant’s role is to provide objective, independent consulting and education services to SDCERA’s CEO and Board of Retirement. The seven-member consulting team will analyze the investment strategy of SDCERA’s Portfolio Strategist and make independent recommendations for Board action and decision-making.