SBCERA

Sunday, December 15, 2013 – 09:30 a.m.

San Bernardino County pension pressures aren’t getting any better.

But they aren’t worsening either!

The latest actuarial report studying the performance of the county pension fund, and its solvency, for the latest fiscal year ending June 30, 2013 still remains full of not so good news for county supervisors, as well as the plans participants.

The report, prepared by Segal and Company for the San Bernardino County Employees Retirement Association, takes into account policies put in place by plan trustee’s that are designed to; phase-in the impact of investment performance on the plan’s funding level; and phase-in, over three years, higher employer contributions to the system.

This year the report doesn’t sugar coat much, because most of the policy changes are now in place.

Using the so-called smoothing approach, the pension system is currently funded at 79.3%. The number is up slightly from 78.9% last year.

Fully recognizing the investment performance of the pension system takes the funding level down to 78.2%. Last year the number was at an alarming 71.9%. A level that had the pension plan in a seriously underfunded condition.

Not that 78.2% is great.

The difference is caused by an unrealized $100 million in investment losses. The improvement is a result of marked improvement in investment performance last year.

A modified employer contribution practice also allows the county to contribute less into the system than it should. However, this year the county will be faced with a significant increase, as a result of the aforementioned phase-in.

This year the county will see another significant increase in its pension fund contributions, courtesy of the systems underfunded condition.

The “adjusted” unfunded pension liability is now at $1.88 billion, compared to $1.82 billion as of June 30, 2012.

The actual unadjusted unfunded pension liability is at $1.98 billion, compared to $2.43 billion as of June 30, 2012.

The market value of current pension fund assets is stated at $7.10 billion, as of June 30, 2013. This compares to $6.17 billion as of June 30, 2012.

Since 2003, annual employer contribution to the plan have grown from $68,361,000 to $303,080,499 in 2013.

The average monthly pension benefit paid was $3,037 in 2013, up from $2,909 as of June 30, 2012.