SBCO

Monday, August 3, 2015 – 07:30 a.m.

It looks as if San Bernardino County will be forking over additional money for pensions.

The county’s pension fund, San Bernardino County Employees retirement Association (SBCERA), only earned 4.6% for its latest fiscal year ending June 30, 2015.

The number comes in well short of the funds actuarial hurdle of 7.5% needed to essentially maintenance benefits and expenses.

Even though stocks have been hitting record highs, the fund has been struggling to shore up an unfunded liability of almost $2 billion that was created during the 2008 financial collapse. In response to the debacle fund trustee’s, in essence, adopted a conservative investment approach, which placed the burden of making up the shortfall on the county general fund, instead of the recovering stock market.

Other pension funds across the state, such as the California Public Employees Retirement System (CalPERS), also failed to meet targets.

It should be noted that one of the contributing factors to the pension woes is the county’s election to withhold employer contributions to the pension fund for a four year period, which ended some thirteen years ago.