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HomeMy WebLinkAboutSan Diego County Employees Retirement Association - Public Financial Report BY THE NUMBERS $16 Billion Total Net Position 45,704 Members 25.1% Rate of Return 80% Funded (AVA) INTRODUCTION This Popular Annual Financial Report (PAFR) provides a summary of SDCERA’s financial activities. The financial data was taken from SDCERA’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021, and prepared in accordance with the Governmental Accounting Standards Board’s reporting guidelines and Generally Accepted Accounting Principles. Both reports are available on our website at www.sdcera.org. For detailed financial information, please refer to the ACFR. The following information presents membership, financial, investment and actuarial data as of June 30, 2021. $3,486 Average Monthly Benefit Our Mission The San Diego County Employees Retirement Association (SDCERA)’s mission is to administer the retirement system in a manner that ensures accurate and prompt delivery of benefits to members and beneficiaries with prudent stew- ardship of trust fund assets to minimize the risk of loss and maximize the rate of return. Our Plan SDCERA administers retirement, disability and survivor benefits for more than 45,000 people. Our members are active, retired or former employees or beneficiaries of San Diego County, the San Diego Local Agency Formation Commission, the San Dieguito River Park Joint Powers Au- thority, the San Diego County Office of Education, the San Diego County Air Pollution Control District and the Supe- rior Court of California - County of San Diego. SDCERA is an employer-sponsored defined benefit retire- ment plan that provides a lifetime benefit to members. Monthly payments are based on a formula using age at re- tirement, years of service credit and monthly final average compensation. SDCERA is governed by an independent, nine-member Board of Retirement. Our Trust Fund The Board has exclusive authority and fiduciary responsi- bility for the investment of SDCERA’s assets (trust fund). The Board has adopted an Investment Policy Statement that defines the trust fund’s governing principles and poli- cies concerning delegation of authority, investment objec- tives, and asset allocation. The investment objectives are to generate long-term returns that, when combined with employer and member contributions, will result in assets sufficient to pay retiree benefit obligations and to diversify the investments of the trust fund so as to minimize the risk of loss and maximize returns. Board of Retirement Skip Murphy (Chair) Elected by Retired Members Mark Hovey (Vice Chair) Appointed by County Supervisors David Gilmore (Secretary) Elected by Safety Members Paul Dostart Appointed by County Supervisors Bob Goodchild Elected by General Members Tom Hebrank Appointed by County Supervisors Dan McAllister County Treasurer-Tax Collector Lisa Rhone Elected by General Members Nora Vargas Appointed by County Supervisors Tim Hancock (Alternate) Elected by Safety Members Susan Mallett (Alternate) Elected by Retired Members About SDCERA TRUST FUND NET POSITION OVER TIME NET POSITION WHERE DOES THE MONEY COME FROM? (Dollars in Thousands) WHERE DOES THE MONEY GO? (Dollars in Thousands) Employer Contributions $634,558 Employee Contributions $162,740 Net Investment Income $3,304,899 Retirement Benefits $916,324 Administrative Expense $14,913 FUNDING STATUS ACTUARIAL HIGHLIGHTS Actuarial Valuation Date Actuarial Value of Assets Actuarial Accrued Liability Unfunded Actuarial Accrued Liability Funded Ratio 6/30/2018 $12,365,656 $15,763,237 $3,397,581 78.5% 6/30/2019 $12,932,244 $16,955,112 $4,022,868 76.3% 6/30/2020 $13,715,875 $17,741,219 $4,025,344 77.3% 6/30/2021 $14,671,508 $18,339,923 $3,668,415 80.0% FUNDED RATIO (dollars in thousands) ASSET ALLOCATION INVESTMENT RETURNS INVESTMENTS MEMBERSHIP TOTAL MEMBERS Active Retired Deferred 2016 17,768 17,734 5,413 2017 17,994 18,247 5,659 2018 17,869 19,028 5,928 2019 18,173 19,706 6,151 2020 18,451 20,296 6,410 2021 18,200 20,700 6,804 2,858 Benefit Calculations Completed $41,827 Average Annual Retirement Benefit 839 Retirements STRATEGIC PLAN During fiscal year 2021, SDCERA adopted a strategic plan that spans three fiscal years. The plan contains five strategic objectives: 1. Trust Fund Sustainability 2. Effective Administrative Governance 3. Excellence in Providing Member Service 4. High Performing Workforce 5. Modernization of Information Technology Projects that support these objectives include: • The launch of a member portal that allows members to access their benefit information online • The implementation of electronic signature capability for our most commonly used forms, making processing more efficient • The hiring of a full-time internal audit director to enhance internal controls oversight • Several information technology infrastructure improvements The full strategic plan is available at SDCERA’s website. CONNECT WITH SDCERA SDCERA’s Member Service Center is here to help! Contact us with any questions. Phone: 619.515.6800 Email: msc@sdcera.org Address: 2275 Rio Bonito Way, Suite 100 San Diego, CA 92108 Hours: Monday through Friday 8 a.m. to 5 p.m. We are emailing members with important SDCERA updates. Make sure we have your personal email address on file by submitting it on our sign-up page. Scan the QR code to get started. San Diego County Employees Retirement Association 2275 Rio Bonito Way, Suite 100 | San Diego, CA 92108 www.sdcera.org | 619-515-6800