HomeMy WebLinkAboutSan Bernardino County Employees' Retirement Association - Public Financial Report2021
Popular Annual
Financial Report
Located in San Bernardino, California, the San Bernardino County Employees' Retirement Association (SBCERA)
administers the SBCERA pension plan - a cost-sharing multiple-employer defined benefit pension plan (the Plan).
As management of SBCERA, we offer readers of SBCERA's financial statements this Popular Annual Financial
Report (PAFR). This PAFR is derived from information contained in SBCERA's Annual Comprehensive Financial
Report (ACFR) for the year ended June 30, 2021, but does not contain detailed financial information, nor is it
presented in a manner to conform to Generally Accepted Accounting Principles. The PAFR does not replace the
ACFR, so readers are encouraged to consider the information presented in this report in conjunction with the entire
ACFR, which is available at sbcera.org.
Annual Comprehensive Financial Report
$13.6 BILLION
TOTAL NET POSITION
33.3%
FISCAL YEAR 20-21
NET RATE OF RETURN
44,000
MEMBERS STRONG
91.2%
FUNDED (Market
Value of Assets)
16
PARTICIPATING EMPLOYERS
10.7%
5-YEAR NET RATE OF
RETURN
$4,171
AVERAGE MONTHLY BENEFIT
2 0 2 0 -2 1 I N N U M B E R S
The Board of Retirement maintains sole and exclusive control of all investments of the Plan and is responsible for the
establishment of investment objectives, strategies, and policies. The Board is authorized to invest in any form or type of
investment deemed prudent in the informed opinion of the Board.
External professional investment management firms manage SBCERA's assets. The investment staff closely monitor the activity
of these managers and assist the Board with the implementation of investment policies and long-term investment strategies.
The Investment Plan, Policy, and Guidelines establish the investment program goals, asset allocation policies, performance
objectives, investment management policies, and risk controls.
For the year ended June 30, 2021, investments provided a rate of return (net of fees) of 33.3%, our highest return in SBCERA
history. The Plan's annualized rate of return (net of fees) over the five-year period ended June 30, 2021 was 10.7%. As we’ve
continued to navigate these unprecedented times, we are proud our team has stayed focused on our commitment to our
members and employers while strategically planning for the future.
INVESTMENTS
“SBCERA is committed to efficiently and strategically managing our
resources and responsibly funding the Plan now and in the future.”
—Debby Cherney, SBCERA Chief Executive Officer
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2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
40
30
20
10
0
-10
International Equity
19.7%
Private Equity
16.8%
Domestic Equity16.5%
Domestic Fixed Income
14.6%
Global Fixed Income14.5%
Absolute Return5.8%
Other
4%
Real Estate
3.6%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$15,000
$10,000
$5,000
$0
HISTORY OF INVESTMENT PERFORMANCE
Note: The "other" category includes percentages 2% and below (Timber,
Infrastructure, and Commodities).
ASSET ALLOCATION
FOR 10 YEARS ENDED JUNE 30, 2021 (BASED ON FAIR VALUE)
FAIR VALUE GROWTH OF PLAN ASSETS HELD FOR INVESTMENTS
FOR 10 YEARS ENDED JUNE 30, 2021 (AMOUNTS IN MILLIONS)
AS OF JUNE 30, 2021
0.46%
15.05%
11.51%
4.40%
(1.07)%
13.23%
8.76%
4.81%
(3.10%)
Assumed Actuarial Discount Rate: 7.25% (Since 2017)
$6,314
$7,205 $8,072
$8,351
$8,196
$9,277 $10,028
$10,527
$10,416
$13,774
Total Portfolio Performance
INVESTMENT OVERVIEW
33.30%
Short-Term Cash
Investment Funds4.5%
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NET PENSION LIABILITY OF
PARTICIPATING EMPLOYERS
FOR 3 YEARS ENDED JUNE 30, 2021
Net Pension Liability of Participating Employers represents the excess of the total pension liability
beyond the Plan's fiduciary net position, which equals assets, plus deferred outflows of resources,
minus liabilities, minus deferred inflows of resources. It is a measurement of pension liabilities
using market assets that provides a consistent and standardized methodology. This measurement
increases transparency of the pension liability across all governmental entities.
MEMBERSHIPAS OF JUNE 30, 2021
ACTIVE DEFERRED
GENERAL
SAFETY
TOTAL
RETIREES
BENEFICIARIES
8,197
12,326
1,966
BENEFIT PAYMENTS
This chart shows the average monthly final salary and the
average monthly retirement benefit for all current payments.
TOTAL MEMBERS
43,989
SERVICE RETIREMENT
DISABILITY RETIREMENTS
10,639
1,687
YEARS OF
CREDITED
SERVICE
AVERAGE
FINAL MONTHLY
COMPENSATION
AVERAGE
MONTHLY
BENEFIT
0-5
5-10
10-15
30+
$5,545
$4,981
$5,069
$7,712
$880
$1,592
$2,138
15-20 $5,499 $3,069
20-25 $5,896 $4,196
25-30 $6,899 $6,159
$8,431
BENEFITSFOR THE YEAR ENDED JUNE 30, 2021
BENEFITS
PAID
REFUNDS
PAID
AVERAGE MONTHLY
BENEFIT
$650,804 $10,018 $4,171
(AMOUNTS IN THOUSANDS)(AMOUNTS IN THOUSANDS)
PRO UDLY SERVING
T HOSE WHO S ERVE
S AN BE RNARDIN O
COM MUNITI ES.
2,529
18,971
21,500
(AMOUNTS IN THOUSANDS)
(a)
ACTUARIAL
VALUE OF ASSETS
(b)
ACTUARIAL ACCRUED
LIABILITY (AAL)
(b-a)
UNFUNDED
AAL (UAAL)
FUNDED RATIO
(AMOUNTS IN THOUSANDS)
ACTUARIAL
VALUATION DATE
(a/b)
FUNDED RATIO
6/30/2019
6/30/2020
6/30/2021
$10,642,401 79.99%$13,304,683 $2,662,282
79.86%$11,133,173 $14,298,196 $3,165,023
81.96%
A funded ratio gives a point in time analysis of how assets compare to future liabilities. In other words, the funded ratio percentage tells us how our assetsare projected to outlast expenses.
$12,258,925 $14,957,436 $2,698,511
2019 2020 2021
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
$2,711,896
$4,008,408
$1,318,097
Note: The average monthly benefit includes post-retirement Cost-of-Living
Adjustments granted according to SBCERA policy and Board approval.
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SBCERA was established in 1945 and operates under the provisions of the California County
Employees Retirement Law of 1937 (CERL), the California Public Employees' Pension Reform Act of
2013 (PEPRA) and the regulations, procedures, and policies adopted by SBCERA's Board of Retirement
(Board).
SBCERA provides retirement, disability, death, and survivor benefits to its members, who are employed
by 16 active Plan Sponsors (participating employers), and five withdrawn employers. These include:
County of San Bernardino, Barstow Fire Protection District, Big Bear Fire Authority, California State
Association of Counties, City of Big Bear Lake, City of Chino Hills, Crestline Sanitation District,
Department of Water and Power of the City of Big Bear Lake, Hesperia Recreation and Park District,
Law Library for San Bernardino County, Local Agency Formation Commission, Mojave Desert Air
Quality Management District, SBCERA, San Bernardino County Transportation Authority, South Coast
Air Quality Management (SCAQMD), and Superior Court of California County of San Bernardino
(Superior Court).
PLAN OVERVIEW
SBCERA AWARDED FOR 2020 POPULAR ANNUAL FINANCIAL REPORT
The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in
Popular Annual Financial Reporting to SBCERA for its Popular Annual Financial Report for the year ended June 30, 2020. The Award for
Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest
standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in
Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program
standards of creativity, presentation, understandability, and reader appeal. An Award for Outstanding Achievement in Popular Annual
Financial Reporting is valid for a period of one year only. This is the third year SBCERA has received a Popular Award. We believe our current
report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA to determine its
eligibility for another award.
SBCERA was also awarded a Certificate of Achievement for Excellence in Financial Reporting for its Annual Comprehensive Financial Report
(ACFR) for the year ended June 30, 2020. This is the 24th consecutive year that SBCERA has achieved this prestigious award.
SBCERA BOARD
Fiduciary oversight of SBCERA is vested with the SBCERA Board, which consists of nine voting
members and three alternate members. Four members are appointed by the County of San Bernardino
Board of Supervisors, six members (which include two alternates) are elected by the members of
SBCERA (General members elect two members, Safety members elect one member and one alternate,
and retired members elect one member and one alternate) and the County of San Bernardino
Treasurer (County Treasurer) is an ex-officio member who has designated one alternate. Board
members serve three-year terms, with the exception of the County Treasurer, who serves during their
tenure in office. The Board meets monthly. Appointed and retired members of the Board receive
compensation for meeting attendance, and all members are reimbursed for necessary business
expenses pursuant to California Government Code section 31521. SBCERA's Chief Executive Officer is
appointed by the Board, and implements the policies and direction set by the Board.
BOARD MEMBERS
AS OF JUNE 30, 2021
Neal WanerBoard Chair
Audit Committee
Executive CommitteeInvestment Committee
Appointed by Board of Supervisors
Marc BraccoBoard Vice Chair
Audit Committee
Executive CommitteeInvestment Committee
Elected by Safety Members
Louis Fiorino
Investment Committee
Elected by General Members
Jean-Rene Basle
Administrative Committee
Appointed by Board of Supervisors
Janice Rutherford
Administrative Committee
Executive Committee
Appointed by Board of Supervisors
Michael KennedyAudit CommitteeAppointed by Board of Supervisors
Ensen MasonInvestment CommitteeCounty Treasurer/Ex-Officio Member
Dawn StaffordAdministrative CommitteeElected by Retired Members
Vere WilliamsAudit CommitteeElected by General Members
John JohnsonAlternate Ex-OfficioHarry HatchAdministrative CommitteeAlternate Elected by Retired Members
Jared NewcomerInvestment Committee (Alternate)Alternate Elected by Safety Members
San Bernardino, CA
Located in San Bernardino,
CA, SBCERA proudly serves
44,000 members, including
retirees spread out across 49
states and a dozen countries.
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