SDCERA’s fund climbs to a record high of $10.1 billion in assets
SAN DIEGO — The San Diego County Employees Retirement Association (SDCERA) reported an all-time high of $10.1 billion in assets under management with a one-year estimated net return gain of 13.43% that exceeds the 7.75% rate of return needed to fund the benefit for the fiscal year ended June 30, 2014. SDCERA’s investment portfolio generated an estimated one year gross return of 13.82%.
“A record ten billion dollars in assets under management is exciting for SDCERA, especially as we celebrate our 75th year in providing retirement security for thousands of individuals,” said Brian White, Chief Executive Officer. “SDCERA’s long-term investment perspective has benefitted members. The fund has withstood turbulent market conditions over long periods of time, generating a 25-year return of 9.43%, well above the investment returns needed to fund the benefit during that time frame.”
SDCERA Board Implements Cost-saving Adjustments to Investment Structure and Asset Allocation
Today, the San Diego County Employees Retirement Association (SDCERA) Board of Retirement voted to approve the second step in a two-part process, which will save SDCERA an estimated $20 million annually. The action improves the alignment of the investment governance structure and maximizes SDCERA’s existing contract with Salient Partners, who will assume responsibility for managing the total investment portfolio, saving SDCERA millions of dollars in investment manager fees.
“Refining this investment governance structure will efficiently align SDCERA’s governance structure and strengthen accountability” said SDCERA Chief Executive Officer Brian White. “In addition to cost savings, SDCERA also gains improved access to the support provided by a broad and deep talent pool at Salient Partners.” Moving the fund’s internal private market investment function to Salient Partners, accounts for an estimated savings of $9.75 million for SDCERA over the contract term, effective October 1, 2014.
In the General member election for the second seat on the Board of Retirement, Samantha Begovich has received the majority of votes.
The ROV certified the election results on May 9. Begovich will serve a three-year term beginning July 1, 2014. Begovich works in the Office of the Deputy District Attorney.
No election was held for Retired members, because the candidates for each seat ran unopposed. Incumbents E.F. “Skip” Murphy (eighth seat) and James W. Feeley (alternate eighth seat) begin their new terms July 1, 2014.
A cost of living adjustment (COLA) will be applied to April 30 retirement benefit payments to all members who retired on or before March 31, 2014. The Board of Retirement approved a 1.50% cost-of-living adjustment (COLA) for retired members at their March 6 meeting.
The COLA is based on the Consumer Price Index (CPI) for the San Diego area, which increased by 1.31% over the previous year. The COLA is determined by rounding the CPI to the nearest one-half of one percent, resulting in a 1.50% increase. Members who are already retired may receive more than a 1.50% increase, based on having a positive COLA bank.
The maximum COLA varies by membership tier – up to 3% for retired Tier I, Tier II and Tier A members, and up to 2% for retired Tier B and Tier C members. Refer to the chart below to determine your COLA amount based on your retirement date and membership tier. Members who retire after March 31, 2014, will receive any applicable COLA next year.
COLA increase effective April 1, 2014
and Tier A
and Tier C
On or before March 31, 2000
April 1, 2000 - March 31, 2001
April 1, 2001 - March 31, 2002
April 1, 2002 - March 31, 2010
April 1, 2010 - March 31, 2011
April 1, 2011 - March 31, 2012
April 1, 2012 - March 31, 2013
April 1, 2013 - March 31, 2014
Health insurance cards will be mailed by carriers in January
Health insurance identification cards will be mailed by insurance carriers in mid-January to retired members and their dependents who enrolled in an SDCERA-sponsored health plan for the first time in November. This year, new identification cards will also be sent to all members enrolled in HealthNet Medicare HMO and UnitedHealthcare Signature Value HMO.
If you do not receive your identification card by February 1, contact your plan carrier. Contact information for carriers can be found on Page 6 of the 2014 Health Insurance Plans booklet.